We bought a large property with my FIL and cared for him at home until he died. We did the whole thing in consultation with him and my BIL, had a deed of trust drawn up which outlined who owned what percentage of the house and what would happen when he died. My son was 2 when we moved in together and I had my second child 2 years later.
I won't lie, there were times it was hard, especially with a newborn recovering from a c section. I did wipe his bum, clean up poo and change the bed pretty much daily.
When my FIL moved in with us he was relatively stable, he was diagnosed with Parkinson's which later turned out to be a more aggressive form called CBD. It meant we were able to have a clear discussion about what we would and wouldn't do. We adapted the bungalow we bought with a wheelchair in mind, knowing FIL would eventually be in one. He had his own bedroom, sitting room and wet room but we had meals etc together.
I wasn't working at the time as I had small children. I did claim carers allowence and it meant we had to plan days out etc a bit more carefully when he was home alone.
He did develop dementia and wondered in to our room a few times at night but we just took him back to bed.
For the last 6 month he was bed bound, carers came in 3 times a day as he needed 2 people to change him etc.
But my children still talk fondly of him and right at the end when he had lost all ability to communicate he would still smile at my 2 ds when they came in to chat with him, they would show him pictures they had drawn etc.
He died at home with support from the hospice with all of us with him.
I don't regret it, but I wasn't a saint and there were times I was exasperated with him and regretted what we had done but there were times it was ok too. And there is no way my children would have had the relationship with him they did if he hadn't lived with us.
The downside was as he died sooner than we thought he would we had to sell the property when he died as we had not paid off as much of the mortgage as we would have liked and we couldn't afford to buy my BIL out. FIL owned the majority of the property outright and it was hard to lose our home, and took a while to sell as it was so adapted!
Only you know whether it would work for your family. We were lucky that his adult social worker was amazing and we really didn't mind the carers coming in, but it did take a bit of getting used to. Also he was only one parent, I'm really not sure we could have or would have done it if MIL had still been alive.
So it can work, but it can also go wrong and you need to make the best decision for your family.