Purchasing Investment/Vacation Property with Parents

[Daniel W Clifford]

Planning to spend between $180-$300K on home. Parents offered to go in on it with me but they do no have enough money that I could simply take the funds as a 0% interest loan...they need return too. I'm trying to figure out if providing them equity in the home (e.g., they would give approximately 10% of home purchase price) would make more sense than trying to figure out a creative payback structure. Should they receive a piece of the rents in addition to their percentage of the selling price if I am providing all updates and maintenance over time? Should they co-sign or sign as part owner on the mortgage?

I guess let's forget they are my parents for a second. What are your suggestions for someone who simply wants in on 10% of a home purchase but wants to put no more into the home OR deal with mortgage tax issues going forward? What would be a reasonable/fair deal for the payback?

Thanks!