A few years ago there were a lot of get rich quick types, and I still get contacted by people who think they can buy 2 houses and retire on the cashflow. 

If I were in your and/or your mother-in-laws shoes, I would go to a local bank and use the free and clear house to secure a $150K+ line of credit. 

-----------------------------Today’s Interest Rate: 6.93%(👆.21, from this time last week, 30-yr mortgage)-----------------------------Today we’re talking: housing market, interest rates, and a quick update on my latest rehab and rent project. 

@Michael Daniel Ultimately, it's all about confirming what the housing authority pays.

. 🔥 Chris Voss"The Master Negotiator” & Author of Never Split the DifferenceLearn high-stakes FBI negotiation techniques for real estate deals 🏆 Dave MeyerHead of real estate investing at BiggerPockets14+ years of experience in real estate investingExpert in housing market analysis and investment strategyVenue: This year BPCON will be held at the legendary Caesars Palace in Las Vegas.

This house is only worth what comparable sales say it is worth.This is how it will be appraised.

Appreciate any advice at all.Things to note: I have a well qualified plumber tenant for the bigger under house garage already.

This is partly due to the fact that the sec8 housing authority I usually work with is "tougher", but they compensate proper. 

But I bought 3 more houses with the cash and now cash flowing $3000/month vs only $1200/month with that one paid off house.

Your biggest issue is that $50k may not let you get a nice house and have any reserves.