It’s owning high quality assets within areas that have a high barrier to entry so that asset appreciates over time as you pay debt down.  

-While rent would be more expensive month by month, the idea of being able to take my equity out of my home and also being able to reduce annual repair costs, property taxes, etc. does seem appealing to me. 

This allows you to report the rental income and expenses directly on Schedule E of your joint tax return, simplifying your tax filing process.

As there are Californians still moving here, the vast majority are instead picking the states with low or no state income tax like Texas, Florida, or Tennessee.Although we still have a positive influx of people moving here, more people have been leaving due to rising housing costs in recent years.To put it in perspective, we saw around +45k in the 2010's.Overall, CO is basically a balanced net migration in recent years which is likely to keep home prices steady....

I do like the tax benefits and leverage.

Adding the ex to the title could trigger gift tax implications, so keeping it simple is best.

The IRS has a guide on rental income and deductions that might help: IRS Rental Property Tax Guide.2.

Did this go to auction or a tax sale?

First step is to figure out how to buy the land (if it is even for sale); I have the name of the owner from the tax rolls, so I think I will start there. 

@James Thompson Transferring property from your in-laws to you can be done through a gift, sale, or trust transfer, each with different tax implications.