Rental Strategies with Daughter as a Tenant
Hi all,
I tried finding this scenario on the forum and couldn't find something similar. I am buying a rental property for my 22 year old daughter to start out after college. It is a 3 BR townhouse in a vacation area. She will have 2 roommates, 1 right away and one in September. There is a good possibility of a 2 month summer renter to fill in. I am discounting her third of the rent by $240 a month to get her on her feet. I am planning to keep it at least 10 years (possible summer weekly rental at some point). I have 2 questions:
1. Since she is family getting a one half discount, would it be better to have a third of it as a second home and write off a third of the mortgage and taxes. Then have the other 2 as income producing renters? I see the advantage as being similar cash flow and income with less depreciation write-off (more $ when I sell).
2. Is it okay to do 2 leases for the roommates? One lease agreement will be tough with different start dates and 1 being my daughter with no lease. I read it's always better to do 1 lease.
Thanks everyone.
Ed