You should have been able to purchase a title policy but it probably would have contained an exception for parties in possession. 

To soften the blow, you could even print a recent article that explains why rents across the country (or your particular area) are increasing at such a high rate.This gives you 3rd party verification and shows you are not just pulling numbers out of thin air.I imagine the tenants will not be surprised, and will likely be wondering what took so long for the rents to increase over the years.I read a recent news article about a lady in Plano, TX that got an increase notice of $750…yes $750 on top of existing rent rate. 

There's a lot at risk when you have thousands sitting in a trust/escrow account that is being handled by a 3rd party.

If you have a 3rd party PM do they use a trust account or do you write the checks and pay the bills? 

This gives both parties the opportunity to test each other out (I recommend 4-6 months).

Tenants in Common(TIC) - both parties would be on title and there is a TIC agreement that shows ownership percentages.2.

Your labor is not included, so all you can claim is materials or costs paid to third party contractors.

@Steve Do If I'm not too late to the party, I'd be happy to chat with you about this.

the potential issue with you is that this is a related party. 

And yes I know, you are not the type of family.....but if someone rents the place for a party and does a decent amount of damage.