I want to buy a rental in Houston with my sons, but I am not sure how to take title. It is my understanding that you don’t have to be responsible for the mortgage in order to take tax advantages, only be on the title. Is this correct? Where can I read about shared ownership? Thanks
You should sit with an estate planner and tax expert. There is no best way. There is only the best way for you and your situation, which can be very different from what someone else has done.
Whatever you decide will come down to 2 choices: owning in your own names and owning in an entity.
I would recommend owning in an entity, as that gives you a ‘cleaner’ resolution in case one of the partners gets into personal financial trouble, gets divorced, dies, or starts slacking on ownership responsibilities.
It is unlikely that any bank will let a partner be on title with not making a personal guarantee on the mortgage.