We ended up buying the house through the more traditional method of an owner occupied loan that is a JV with my daughter. 

The next person to come view the house was going to buy it for his 30 year old daughter to run as a bed and breakfast and he knew she would absolutely love it when he first walked through the door and made an offer that same day.

Was thinking about Reno/Tahoe area too actually,- my daughter goes to UNR,- and Reno - Tahoe proximity cannot beat - especially value of properties in Tahoe area on both size of the state border compare to Reno,-)…

. #3, The middle aged mother who had 3 young adult aged daughters.

Since I have 2 daughters, I will chime in here with perhaps an unpopular take.

I house hacked a duplex until my daughter was four; at that point, we really wanted a "house" house.Good luck!

I have a wife and daughter and hopefully a few more kids in the future.

Was the grantor competent to sign the deed or does the fact that she was 98 years old and in a nursing home when the evil sister (ES) had her sign the deed that left out her other daughter and son render her subject to claims of incompetency to the undue influence of ES? 

When I went to get background checks he mentioned that he and his wife and their daughter did not have social security numbers and were living in the US illegally. 

If they don't, you probably don't want to touch it either--unless there are other factors you haven't posted (eg. it's your daughter or CLTV is 40%).