I heard many people on this site advise against this but I want to know your thoughts.

Thank you for the advise,billy

It has to be arms length transaction so it is highly advisable to have a PM company manage the property and repairs.

@Marco Santarelli thanks for your input and advise!

Still this will be my first flip and the first time using family money so we want to make sure everyone is covered and all the responsibilities are spelled out.Does anyone have a recommendation for a Houston real estate attorney who could advise us and draw up the paperwork?

In this case, you- the property manager do not look like the 'bad guy' and are just doing your job to avoid getting in trouble with the 'owner'.Would positioning myself in this capacity be advisable given that I would be living in the same building as my tenants?

Jones, I would advise you not to look for deals but let your deals find you thru your marketing efforts.

Having gone through a business deal gone bad with a friend I would just advise to make sure you CLEARLY spell out everything, including who is going to do what, what the ownership interest and voting rights are, who makes decisions and what things require a vote.

For your first investment I wouldn't advise doing something too "outside the box".

My advise follows the others.