All of them broke lease and moved outIt's a messYou may want to pay a couple of hundred buck for legal consultation.  

A lot of forum members are experts in their respective fields related to real estate investing, whether that is real estate sales, wholesaling, flipping, buy and hold investing, lending, self-directed IRA and Solo 401k investing, or tax and legal guidance.If you haven’t been to it already, the Bigger Pockets blog features links to their fantastic podcast and many great articles: https://www.biggerpockets.com/renewsblog/The site has quite a few tools that can be helpful for new members.

Additionally, it gives you the flexibility to sell or lease the properties individually in the future.One potential downside is the costs associated with subdividing or creating separate LLCs, including legal fees, taxes, and administrative expenses.

if they are CA based there are a few ways to legally lend hard money.. 

Without a rental license you legally are not allowed to collect rents.

The main thing I want to make sure is that this is legal.

I believe you can offer her a renewal at $2,000 a month, she won't be able to afford it, and then you have legal grounds to terminate her lease.

However, loans under $200k, it's closer to 3-4%, and loans under $125k, expect around 5%.Lenders typically have flat fees (UW, legal, etc).

Can he cancel his entire annual lease legally and I should look for another tenant? 

If your wife’s family agrees, you could look into purchasing the home from the trust, possibly before it enters probate, which could save time and legal headaches.Reducing Closing Costs: One way to reduce closing costs is to negotiate a private sale among family members, which might save on agent commissions and some taxes.