Negative cash flow, good deal, caveats - worth it?

[KYLE W.]

Hi everyone,

This is my first post, and I'm in the midst of education, so bear with me here as I explain this complicated deal that lay before me if I choose to accept it.

The deal is $260k for a 1600 sq ft house, and an old manufactured home on 8 acres that I'm currently living in and paying $600 rent, in the country outside of Austin, TX. The home prices here are soaring because of a great school district.

On it's face, those numbers are fantastic, and this is because it's a family-only deal, so the savings are passed on. However, there are caveats.

The current renters (my in-laws) come with the house, and they pay $1300 rent. They cannot be kicked out, and rent can only be raised with inflation.

I cannot sell the land for many many years, let's assume 20.

And, this is a big one, I have to give the in-laws a chance to buy their house within 2 years from the date of purchase and a fair price. 

If I go through with the deal, I will own 4 acres and the trailer out-right, but the loan will be on the remaining 4 acres with the house.  (This is all because the trailer is so old that you cannot get a loan on it, so you buy it for a $1 and separate the land into 2 parcels.)

My initial monthly payment will be $1600, but i'm expecting tax rates to drastically increase in the first year, bringing me to $1900 or $2000, so a negative cash flow rate of $500-600. 

Now, I think with the numbers so far, it's ok for me as a long term investment providing I sell in 20 years. But that means I'm assuming the land will at least hold it's value, and I know I'm not supposed to be trying to predict the future. So it seems to me worst case is I break even. But still, it doesn't look that great to me.
 
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I do have a couple other options here, I can keep renting, and hope that the in-laws get their debts paid down to buy their house. Then I can buy the 4 acres with the trailer for $70,000. The deal I really wanted initially, so I can snag a discount on land and use the equity for whatever I chose. I do have the ability to pull this off if it happens. But that could be another year or two.

I can also just effectively forget about the deal, and start off investing in other rental homes around the area, getting my feet wet and getting me some positive cash flow.

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I know it's a complicated deal, but I just want to make the smart financial choice for my family. I am open to anything. I'm sure in a way I have some emotional attachment, but all I care about are the numbers at the end of the day.

Thank you for reading this far. Is there a way to tip people for good advice? I could really use it! Thanks guys.