I would lean towards recommending that you pursue the deal - plus having the property remain in your family may be a net positive for you and your extended family regardless of the ultimate financial return. 

The home should be returned in a condition very close to how it was when they moved in.

This should include potential rental income, expenses (including property taxes, insurance, maintenance, and potential vacancy), and your expected return on investment. 

For my partner and I, it’s a question of effort vs return.  

$400k equity is producing $1600/month cash flow for a return from the cash flow of 4.8%.  

Leslie, sounds like you approached it more from a management perspective or returning guest.

Prioritize stable cash flow, good location, and manageable property condition, while considering strategies like gradual rent increases, expense reduction, and value-add improvements to enhance returns.

Legitimate, in this case, means that the entity is part of an overall business investment strategy whereby you have a business plan, tax returns, and the funds you seek are for further business expansion.If, however, the LLC is a stand alone entity, is not profitable, or is not legitimate, then your probably better off putting into your personal name and securing funding that way, or still talking to local or regional banks to see if they have any loan programs available where you might be able to secure financing.

My investor clients are typically happy with a small return right now but are buying on the idea of refinancing and getting future higher cashflow, principal paydown, and appreciation. 

.——————————————————————————————————🎄 Enchant Christmas Returns to Las Vegas!