On your taxes do you write off the MI currently? 

Due to their liability protection and tax advantages.

@Carlos Carrion, this is the kind of thing you want to go to your real estate lawyer for because you want whatever you do to conform to the laws of your state.

Any good recommendations for a lawyer who understands real-estate investing and can write up owner-financing contracts?

These type of people always have a story about the job they're about to get, tax refund coming soon, inheritance, etc. and when you drill down you find out they lack basic things (ID) that would enable them to follow through on their plans.

It would also essentially wipe out $400/month rental income and you'd lose the additional benefits like potential appreciate, tax advantages, etc.If you planned to buy another rental, that would be a different conversation because there might be upside there.

I have been paying a lot of taxes every year from selling stocks and have a high W2.

Now post-COVID you have a larger inventory, increased prices, increased interest rates, increased property taxes, increased regulation (even Smokies are now requiring permits) and increased insurance and at the same time return of the reduced Pre-COVID occupancy numbers. 

They would likely lose any homestead tax benefits and possibly lose other things as well.

We would want to make my parents the 'renters' and we as the landlord.Question: In terms of taxes, is there something we should consider when renting to our parents?