Updated almost 8 years ago on . Most recent reply
Renting an investment property to family
I've been giving my Mom an "allowance" for years now. She's moving near me and will be renting a
SFR property that I'm closing on next week and paying me rent. I'm trying to decide if I should actually have her pay rent so that I can show income on the property and it'll help me be able to get future loans due to the rental income? Or, just stop giving her the allowance and have no income on the property? The PIIT will run about $650 per month and market rent is about $1100. Trying to figure out the most advantageous way to crack this nut from a tax and rental income perspective. I'm meeting with my CPA next week. Any inputs would be appreciated!
Most Popular Reply
Thomas S.
#2 General Landlording & Rental Properties Contributor
#2 General Landlording & Rental Properties Contributor
Your best option would be to find a place for her to rent that she can afford with out needing your financial assistance , one you do not own, and rent your own place to a tenant.
Not sure what your mothers situation is but she should be able to contribute something toward her own rent.