College Rental Set Up

[Meghan Billings]

I am planning on partnering with my sister who has asked about buying a college rental property for her son. How would you recommend structuring something like that? He would be house hacking it for us so we could do 3.5% down (though it destroys our cash flow so I'm not convinced it's the best option) I assume I would co-sign on the loan since he has no credit yet. Or would I just put the title in my name? Do we split the down payment? Split the cash flow or structure it more like a partner that I could buy out in a few years and pay them off with interest? Do we offer him reduced rent? free rent? Anyone have experience in something like this? If this did work, and we co-signed, would that mean I couldn't co-sign on another FHA loan if we wanted to do it again with another student?

Thank you!!