A few things to think about if you do decide to invest out of state:How involved in the process do you want to be?

For instance, this particular deal I'm currently involved with is located in the Unincorporated Lake County area.

It is extremely risky to not have any insurance in the event of a huge loss such as the house burns to the ground or a major lawsuit involving your property because of an injury.

Im hoping to find some ideas , and creative ways to come out of my comfort zone and get more involved with others in my area.

It turns out she was a good tenant that paid on time and kept the house clean. 

If inherited, they would have a new tax basis and little or no taxes (which would be preferable except that means granny died, good for taxes bad for granny) but since you said a Quit Claim Deed was involved it's unlikely it was inherited.

I was involved in real estate investing in the Phoenix area in the late 90's and up through 2008.  

No verbal understandings allowed where money is involved.

As I mentioned I am specifically involved in the multi-family space.

@Gary Thompson If father in law just wants a loan and interest, rather than being involved in the risk and the reward then he should just do the hard money interest rate.