Though the buildings are attached, the guest rooms all have individual exterior entrances with no interior connection to the residence. 

@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.

Here’s some context: Property 1: >$100k in EquityValue: $325kDebt: $220k @ 2.88% (30-year fixed)Property 2: >$70k in EquityValue: $325kDebt: $252k @ 3.38% (30-year fixed)Extra considerations: - I have $15-20k liquid to use for any of these deals- My current job is relatively stable, but not high-payin- Current properties in TX, living in NY, looking to invest in Mid-West (crazy, I know)- No other debt obligations besides the two mortgagesUltimate goal/timeline: Though a bit ambitious, I’d love to build up the portfolio to 10-20 units in the next two yearsI understand that any/all replies aren't financial advice; all ideas welcome for information purposes. 

Purchase price: $516,000 Cash invested: $600,000 Converted mixed-use 3 residential and large commercial space into 5 residential units and one mixed-use Building.

@Anne MusaIt's great that you're looking into small multifamily and STR/MTR investments to build wealth and secure your family’s future!

The big pro that sticks out to me in Birmingham is the tax rate. 

House hacking by purchasing a duplex, triplex, or single-family home with extra rooms can help you reduce or eliminate housing costs while building equity.

The problem is that we need to be careful with the word "passive" because it has a very specific meaning in the tax law, and it is not intuitive.For example, losses from rental properties are usually passive but not always, there are some exceptions.

If you sell it, you get $250k single / $500k married exemptions from capital gains.Speak with a tax professional about how much you'll save in taxes by doing this. 

Property taxes creep up, exterior repairs , and a brand new HVAC last year wiped out $11k of reserves.