However, an easier option would be to use a bridge loan to help with acquisition and rehab financing if the property needs some work.

Here's an article with additional FAQs on cost segregation studies that you may find helpful.

Would be happy to help with insights into the area and run through numbers. 

You risk the chance of being sued for not letting someone apply that asked.Hope this helps, feel free to reach out if you have any other questions

At that time we could renovate the ground floor apartment and potentially turn it into (2) apartments for a total of (5).My questions come down to how do we deal with the existing 40k mortgage, whether we can make it work so her parents aren't paying much in rent, if anything at all, and whether or not we set up any legal entity, like a trust to help the legal situation of paying off her sister down the road. 

Did you ever hear anything or find out more?

Hey Eylon, Id love to jump on a call and go through this and your analyzing more.

Feel free to ask me any questions—I’m happy to help!

@Dallas Morioka what specific help are you looking for? 

I was able to get more information on the property then if I didn’t know the seller and I’m still able to contact the seller if I have questions.