Deal or No Deal? I need some opinions

[Ryan Cavasin]

Hello BP,

So I'm living at home still with my mother, my grandfather is getting older and were planning on moving in with him. His house is dated and my mom wants to do renovations before we move in which will cost approx $15,000. She wants to keep her current house and rent it out, after all bills it will cashflow $450 a month ($1600 rent-$1150 bills). Once moved in, she won't have any living expenses (my grandfather won't charge her rent) and she will have $450 cashflow coming in. She said she can't afford a $15,000 renovation so i proposed a deal.

I would give her the $15,000 for the renovations in exchange of $200 cashflow per month. From my perspective I get a 16% return on my money so im happy, my mom lives for free and has a updated house ontop of getting $250 cashflow a month ($450 minus my $200 cashflow) and my grandpa has people living with him so he's happy.

I want different opinions if this is a good idea for me, 

Thanks!

[Curt Davis]

Some ppl might say to never mix business with family. As long as in the event things don't go according to plan you are ok with that.  What happens when the tenants who move into your moms home need repairs made, can your mom afford them or will she rely on you to pay for it?  I feel that you will be caught in the middle of all of this and it will be a lot more than your initial $15k.

Good luck!