If you sell it, you get $250k single / $500k married exemptions from capital gains.Speak with a tax professional about how much you'll save in taxes by doing this. 

I’m looking for ideas of how to do this, and any advice on how to protect my primary property along with paying low taxes. 

You would have had to be there for at least that to save on the capital gains taxes (up to 250k). 

@Bradley Buxton makes a very good point to make sure to do your due diligence as you won't be an owner occupant like your in-laws.Last bit of advice: Because this is a friendly deal, you want to take your time to make sure you structure it in a way that maximizes tax and cashflow benefits for both parties. 

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

For example, in my state PA there is an inheritance tax and many TAX auction properties originate from people passing away and the heir(s) not taking control over the estate and paying those property taxes.

My assumptions are:1) Cap-ex, maintenance, vacancy, and PM costs are around 33% of rent. 2) My desired cash-on-cash return is 12%.3) My taxes and insurance, for argument's sake, are a combined $550. 

The contrasting growth patterns between Oregon and neighboring Washington suggest that factors such as taxes and public services are influencing these trends.portlandmetrochamber.comOverall, Portland's housing market in early 2025 reflects a balanced environment, with steady home prices and a healthy inventory, offering opportunities for both buyers and sellers.

The big pro that sticks out to me in Birmingham is the tax rate. 

Property taxes creep up, exterior repairs , and a brand new HVAC last year wiped out $11k of reserves.