If you can get a note for 200K at no interest and you have completed your due diligence on this deal, then go for it. 

Monthly payment is 1900 with a 6.5 rate and would rent for 2500.posted in another group but realized it was the wrong one Hey Keith, I've helped other clients do this sort of thing - vacating a primary residence and then pull out cash to purchase another property elsewhere.

If she's willing, which it sounds like she is, your mother-in=law can get the line of credit with her property in her name and then you can just use the line. 

Then, check to see what a market-rate rent would be for the units. 

The home office deduction cannot increase your passive losses:You can only deduct home office expenses up to your net rental incomeIf your rentals are already showing a loss, the home office deduction won't helpExcess deductions carry forward to future yearsMust apply §280A limitations first, then passive loss rulesExample: 🔢Rental Income: $24,000Regular Rental Expenses: -$20,000Net Before Home Office: $4,000Home Office Expenses: $3,000 [using allocations, not the Simplified Method]Result: Can deduct full home officeCounter Example: 🔢Rental Income: $24,000Regular Rental Expenses: -$26,000Net Before Home Office: -$2,000 (Loss)Home Office Expenses: $3,000Result: No home office deduction this year (carries forward)Reality Check: 🤔Let's be honest - while technically you need to:Calculate net rental incomeApply §280A limitations [Consult your CPA on this!]

(Unless it was a rental, then you have to pay depreciation recapture as well, usually at 25%.) 

You have to pay fees, but you'll have a professional handling issues instead of bleeding money trying to figure it out for yourself, then you have your time free to pursue other things.

It should have been 2-3 months and I was in it for 7 months renovation and then took almost 4 months to sell.

Live in the multi-family for a year, then move back into your own home and rent out the unit.If if not ideal, it's worth the hassle. 

I worked as a firefighter so I got the building construction from that background and then the transaction and numbers I got with working within/alongside investors that were in the business doing the stuff I wanted to do.