Now if she works with a savvy lender who can take the legal and filed instrument that demonstrates your obligation to pay her debt then she may not ultimately get dinged by the future lender on her Debt to Income ratio. 

Start with BiggerPockets Ultimate Beginners Guide (free).

Ultimately, communication and compromise are key to securing the perfect deal for both parties.

Start with BiggerPockets Ultimate Beginners Guide (free).

It is up to you if you want to bet on an appreciation play and take the small losses each month with the ultimate goal of refinancing when rates fall and getting to a point where you can cash flow.

Ultimately, it's up to you to decide whether buying this property is the right decision.

However there are similarities in what I am currently doing and is working spectacularly which is why I posted here, but would ultimately repurpose the document.  

If you can afford a mortgage, the worst that could happen is having equity in a home that is bound to appreciate, and having a mortgage payment instead of paying rent with the ultimate goal of cash flow when you end up renting it out.

That’s sort of a lopsided “parent friendly” version where they see you as the ultimate owner, but get a return on their investment, and they still have security on their money.  

It seems like maybe less headache depending on how you are looking at it and what your ultimate end goal is.Given that you are quoting the estimated rental numbers I am guessing you are looking at both monthly profit but also pulling cash out to refinance and pay that loan when you are done.