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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][b]About ten years ago [/b]my in-laws started buying rental properties with their home equity line. It would get self funded with renters, [b]pay down the loan and they’d do it again. [/b]They’d also fix up and maintain the properties, file all the rental income taxes, keep things to code, etc. Single and jobless BIL, 40yo, lives near them and has no job so he liked to find the renters and call himself a property manager (with his dad and mom of course).

As my husband was having one of those Retirement Funds conversations with them it turns out they put BIL’s name only on each of the $1M properties! Yet MIL manages the finances of them but perhaps all three of them have anytime access to the rental income. BIl takes month long vacations whenever he wants.

So are these cash cow properties their retirement income or a gift to jobless BIL or inheritance early for him?  Will we get an equivalent thing or is this just their socialist thing to do for little brother?

Moreover, what happens if the in laws need money for something medical or live in home support?  Will we have to go through BIL or what is going on here? They also have company stock, a DB pension plan plus SS. 
[/quote] How much equity is in them in total?  They cannot be paid off yet.  How many houses? [/quote]

This is a pretty common flywheel to get going: Downpayment 1 gets paid off with cash flow; Rental income goes towards Downpayment 2, which gets paid off in 2-3 years; Rental income 1+2 goes towards Downpayment 3, etc. 
Could be apartments which are quite lucrative as well if you know where to buy and what to pay.

But back to original topic: WOULD YOU DO THIS TO YOUR TWO KIDS? Only put one on the various deeds and access to the rental income. 
Or would you put in your own name, the parents or a trust I guess, and split things equally later when needed. [/quote]

No, I would not though will qualify in a moment.  My parents grew up in two radically different circumstances.  My aunt was older than my dad and their middle sister by ten years.  She never forgave them for being born.  She held it against them till her last breath.  She divested their mother of all her money and ensured that she got the largest parcel of land in the homestead.  She sold their mother's house and kept all the money to cover the "expenses" she paid for their mother.  Yes, she did live with my aunt and uncle for a few years before she entered a nursing home, but my parents and aunt did their share.  OTOH, while my mother's family may have been pathologically equal to a fault, we as her children learned how to divide equally amongst us.  The lawyer who handled my maternal grandparents' estate said that he never had a family (six children, 30 grandchildren, 15 great grands, etc) where everyone strove to do right by each other.

My two sibs and I did an exemplary job in handling our parents' estate - lots of communication is key.  Alas, I've heard my SIL more than once ask my FIL to leave her the money and the property (a house and half of a vacation property) to DH/her brother as he is "just better at that kind of stuff," i.e., "just give me the cash."[/quote]

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