However, the property’s cost basis (what they originally paid) carries over to you, meaning if you later sell, you may owe significant capital gains tax on appreciation.Alternatively, selling the property at fair market value eliminates gift tax concerns, but your in-laws may owe capital gains tax on any profit.

I have a lot of good information on the KC multifamily market that I can send you. 

In fact, just finished one that I have yet to put on the market. 

Housing pressures will vary by market.

Is Phoenix a good market?

in a stick frame market and one of the cheapest markets to build we build with margin at $190 or so a square foot. that will go up over time about 5% or 10% a year to keep up with new build price increases. we are buidling a 3 story walk up and source some of the lowest priced crews.

You're in a strong rental market, and house hacking a small multifamily in Phoenix is a smart way to build wealth.

I think it's the best market in the whole country in my opinion.

Know your market cap rate and you can quickly determine whether property is worth a closer look. 

Since the rent roll was too low, she had to secure financing through a private lender that based the loan on market rent rather than the current rent.