She signed over the deed in lieu of payment.

If househacking is possible I would rather buy my primary house using a low down payment for first-home buyers than invest in other properties in Sacramento, Modesto, Fresno, etc.

It depends on what your starting reserves are, but if you have enough for a down payment, I would look into DSCR loans for financing, as you can qualify based on the property's cash flow as opposed to your own personal income. 

My rent is 3k a month and my payment is 4k a month.

@Michelle P Stafford, Any type of calculation of rent that includes a consideration of what principle they would have paid if they bought it, or corresponds to a payment amount of a loan could be considered an equitable interest in the real estate. 

Ultimately, leveraging both a reliable company and a DSCR loan maximizes investment potential and safeguards against unforeseen challenges in the rental property market.

Purchase Price: $380kTaxes/Insurance: $9,300 yearly (estimated)Downpayment: Up to $100kMy vision for the next 1-2 years is to live in the house and use the MIL suite income to pay most of the mortgage while saving enough for another down payment on another home that would become our primary residence.

In turn we agreed to accepting deed in instead of payment.

Our monthly payment with putting 5% down will be $6,700.

However, they pretty much even out in terms of total mortgage payment vs rent.