Finally, create a detailed financial plan that includes your home buying budget, loan arrangements, rental income and expenses to ensure that the investment remains profitableThank you!

Do these companies typically handle tasks such as cleaning and furnishing, or would I need to arrange for those separately?

Sellers go out thinking they have a deal and contract for their new living arrangements only to have their deal fail and now it puts them in a pickle.

Any phrases such as "finished basement or attic", "in-law suite/arrangement", "seller nor listing agent can confirm the legality of the basement/attic unit" are a few common ones.

Our current lease, based on a template, prohibits subletting, so I’m not fully aware of the pros and cons of this arrangement.

And, I sure as hell won't agree to any arrangement whereby I owe someone my time on a prolonged basis. 

Timeframe, legal considerations, and best practices going forward of course vary by jurisdiction.You can't count on believing that the family member doesn't already have utilities under their name or similar arrangement that will keep the power on for them.

Similarly, some leases have options to purchase or lease to own arrangements.

However, are there tax implications to this kind of arrangement? 

It's also nice to include some photos if you want things staged, or the coffee table items arranged a certain way.