Renting Out My Parent's Home On Their Behalf

[Kristen L Garner]

My parents own their home in Indiana free and clear but they are planning to move to Florida in the next 1-2 years and buy a second home for their retirement. I currently live in California but am building a SFH and MFH buy and hold rental investment portfolio in Indiana. They want to keep the home in the family and I am trying to put together some options for them other than me buying it from them. How would I go about letting them remain as the passive "owners" while I rent out the property, oversee the PM company, and make sure it is as hands-off as possible for them? I would want them to receive a large share of the rental earnings to help with their retirement living costs and keep only a small portion for myself to cover my costs and place in a designated account for things like tenant turn over and repairs. Eventually the property inherited by me. Is this legal? What are the tax implications? And has anyone done this? Thank you in advance for any thoughts, tips, or help!