You won’t be doing any background check on anybody living in your property, that’s for the person screwing you to do.

For additional reference, I live in TN.

@Ally Alvarez how much stress are you comfortable with?

I own real estate outside of CA, both in the country and internationally but have chosen to rent in Hermosa Beach due to the high cost to buy a home in coastal southern California.The apartment complex I live in was bought April 1st by an private equity company who gave all the residents a 60 day notice to vacate so they could due a total rehab.   

Are you planning to rent it out or live in it?

Rent it and once your comfortable you can move one on the 2 property.

If she lived in the property 2 of the last 5 years, the first $250K gain is tax free for her.I wonder if the DIL is going to buy an investment property, why not just go in on it with the MIL and then he gets it through right of survivorship.

I, the owner, living in one unit of this two-unit building, was never told this.

Reason I ask, is, you may be living in your first rental. 

I worked for a group of real estate investors when i lived in Phoenix Arizona for about 3 years before having to move closer to my family here in Columbia, SC.