As for appreciation, the Austin market is stabilizing to the higher interest rates and we could see a mild appreciation for 2025. 

As you go on your real estate journeySomething I would recommend for you is this website. https://www.areavibes.com/Use this rating and classification system I have created over time to get an idea of the "Class" for the area - A class B class & so onHere is my rating & classification for each livability score.80 and above A+78/79 A76/77 A-74/75 B+72/73 B70/71 B-68/69 C+66/67 C64/65 C-60/63 D59 and below F

Apparently now those investments are less interesting to city hall. 

The investors get much more profit out of the property.Recommend having a very open conversation with your FIL, expressing your interest in potentially taking over the property from him.

I've seen a lot of people try this, and they rarely use the home. 

What this stems from is that the IRS requires that a taxpayer trace interest expense to the nature of how the proceeds are used. 

He wasn’t interested in brainstorming solutions, like using the inspection as an out.

You can Google it and find plenty of articles on it.

The only two ways to rectify this are (1) purchase the property far below market price or (2) significantly increase the property net income usually through some method of “repositioning”. 

I would prefer to sell the property vacant or the easiest less stressful way as possible, however I was advised that could deter investors buyers interest as the rental income is a one of my strong selling points.I am open and would appreciate any thoughts and/or suggestions from fellow agents or investors alike.Thanks