Doing a joint venture could be another option.

We detail the full stectrum of passiveness (funds vs. partials vs. joint ventures vs. whole notes, etc.). 

Open to loans but only if we net 10k a month after mortgage payments With 2 million dollars you could solely fund one of our ground up development deals at 15% down on a 50,000 sq ft building which we put about 70 units in on non recourse debt for land we already have locked up and entitled. don't buy and hold, don't listen to any of the 20 agents from columbus here who try to sell deals that are garbage. if buy and hold was the answer you'd see massive capital pools in columbus buying deals up. that was the model in 2014. all of the value creation is from ground up development partnerships. we can build with land cost below 65% of finished asset value on lease up and you can have no risk into the deal. the deal I'm talking about is a 12 story deal that we are working on. in columbus you can get downtown land for $400k that is about 0.22 acres right now with unlimited height and unlimited floor area ratios and build massive equity from joint partnerships.

If it were a cash transaction I'd suggest joint tenants with you holding a 1st position lien for the proceeds you injected into the deal.

I read somewhere here that I could advertise here asking for joint venture partners, how does that work?

It works over time, but the problem I see there is that you are consuming junk as well as having to make decisions on what is actually valuable information.There are plenty of opinions on how to do such on Bigger Pockets, but a lot of those opinions are misguided or wouldn't apply to you.You can do joint ventures with successful investors.

The gain is tax free, $250ksingle/$500k filing jointly.

Joint Ownership with a Formal Agreement: Another option is to keep the mortgage as it is but create a formal agreement where your sister-in-law is no longer financially responsible for the property.

Depending on your state, you may be able to enjoy a step up in basis upon the death of a spouse.Non-Community Property StatesIn every state but the community property states, spouses are treated as joint tenants with rights of survivorship (JTROS).

Would be called a joint venture .