However, I might suggest putting that same effort into wholesaling until you save up enough to do your own investing.There may be others on this platform who still swear by arbitrage, so I'll leave that advice to them.

I agree there are rough areas, but far fewer than media suggests.

Any who if any one has any ideas or suggestions that work please feel free to comment.

Any suggestions would be great! 

I am with @Nathan Gesner suggestion of a pre-inspection.

Because they are undermarket, most mom and pop or uneducated 'investors' will just see it for what it is, maybe they'll run some simple numbers, and ofcourse the numbers with the below market rents and the now new purchase price don't likely pencil out and so... they will walk away and keep looking and are usually the ones complaining that 'it's hard to find any good properties in today's market'... where in fact that is exactly where you as a savvy investor make your money. 

I second the suggestion of retaining a geotech engineer.

Since your in-laws own the condo, it seems like the easiest solution would be for what you first suggested in receiving compensation via form 1099.

I would keep it simple and go by what the lease says.

(Assuming that’s longer a the minimum required.)After that I would probably suggest you hire a PM.