My advice on sub to is as follows1- COMPLETELY understand the process, implications, liabilities, and possible outcomes before engaging or attempting to engage in a sub to transaction2- Complete disclosure going so far as making sure the other part understands the transaction and possible consequences3- Utilization of an attorney experienced in subject to transactions for setup in such a way that provides some protections in case of default or in case the note is called4- Have a backup plan in case the note is called5 - only use for property that has a TRUE positive cash flow unless the buyer has substantial reserves I myself have purchased 8 properties subject to, but 5 of those were commercial properties which often have notes where a subject to is allowable.  

@Michael Beirne Lower priced markets such as Baltimore are very difficult to operate in utilizing entirely 3rd party support.

Outcome currently is a rented basement for $1,350 a month + $130 in utilities while I live in the upstairs unit.

When that portion was complete, I could then receive draw money which allowed me to pay my utilities, taxes, and mortgages.

There is a ton of areas so I would start with where you are located at, within a 30 min drive

To minimize capital gains tax on the sale of their primary residence, your in-laws can utilize the $500,000 capital gains exclusion, potentially explore an installment sale to spread tax liability over several years, or consider converting the property into a rental to use a 1031 exchange for tax deferral eventually.

Type of construction materials for the build(block/metal frame/wood frame), separate utilities, finishes, tech, cleaning crews, any tips and tricks would be HUGE! 

That is crazy that there are not more 2-4 family in a market like Midland-Odessa with a ton of transient oil field workers that do not always put down roots.

Hopefully we will meet at one of them and help one another out. 

Where did you take into account the landlord paid utilities?