He is trying to obtain financing, however, he poses a huge liability risk for me.

Could I transfer the property back to myself to obtain conventional financing when I go to refinance it? 

If we put it in an LLC, it's safer to do business, and count everything as a business, as well as protect our personal assets. ---- As I am typing this, I'm thinking it might just be better putting it in an LLC, since I can't exactly think of any cons to this.

IRA's have to actually invest a significant amount in an asset. 

We will have liability up to 1M on the property.My questions stem from loan/Asset Protection.If we were sued, and for the sake of this discussion we are sued and lose $2m, would we only lose our $1m (insurance proceeds) and 20% capital (assuming we have to sell the property). 

@Michelle Grippo, a 1031 exchange would allow you to sell that property and put the money into different assets that produce a better return without paying tax. 

Hey everyone,i'm just getting started in REI and i'm about to obtain my first SFR.

I am trying to obtain legal control of the property with mother in law and wife.

The short answer is yes, you can invest assuming you have some capital and use a hard money lender that lends on the asset itself only, not your credit score. 

My lender couldn't have cared less about assets for my fannie loan, which I thought was weird.