Once rented, refinance to pull out equity and repeat the process.

My thought is to structure a deal where we borrow her parents equity from them and pay them in monthly installments once we get the apartments rented.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

It is difficult (though not impossible) to make condos pencil out for a positive ROI is tough (but not impossible). 

I would hate to put myself in a position to get the note called or be found in default etc.

Live under your means and start thinking about investing in Real Estate.In your position the thought of finding a duplex to house hack, live in one side and rent the other. 

Once you get going, your appreciation will be great over time so you can recycle the equity to buy more and more properties.

So you get way better bang for your buck and there is still positive cash flow and deals that hit the 1% rule. 

I'm currently finishing up a duplex in William Land Park, where rents will cover costs, but the value add and forced appreciation will give me $250k in equity.

@Chris CoreYou're in a strong financial position, but since house hacking isn’t lowering your expenses in your market, it's time to pivot.