@Jing Tagle  Well, let's just look at what they got from your relative just last year

Not that you would be a jerk landlord, but even if you're pleasant, you are better off keeping your relative position of power as their landlord.Then, just send them notification that the property has been sold to you and where they are now to send their rent.  

So, if you have the receipts paid for by your relative, and proof you sent the relative money to reimburse them, you have an acceptable paper trail, in my opinion.

If your hard money is costing you 15-20% and your relative is willing to lend at 10% there is no need to offer more. 

If I was you, I'd figure out how much time you think your relative will actually spend on tenant issues and maintenance. 

Jason,Private lenders are your relatives and people that know you well.

Do your relative a favor and find the best LA you can for them and learn the ropes. 

I agree with the others that you can create a written lease that states she is the sole occupant, then kick your relatives out if they try to occupy.

@Greg Shows Many lenders won’t give a HELOC on a rental property, but there’s a lot of programs out there now.With that said the capital gains tax situation is piece to work around if you want to avoid/minimize that for your relatives.There’s several ways to go about it from buying the place with a conventional loan to doing a lease option with a strike price that follows your relatives declining principal balance on their loan.

Your relative should have the instinct to know if he is playing his game.