Personally, I find BTRs to be more predictable with fewer ongoing maintenance issues, and they tend to attract high-quality tenants.

Quote from @Travis Timmons: AirDNA published their annual list, and the markets topping it are: 1.

Alternatively, your in-laws could partially gift the property by using the annual gift tax exclusion ($34K per couple annually), lowering the sale price and their taxable gain.

Don't forget to annually mark time for vacation or family time.You might consider hiring a teenager part time if there's something that is time consuming (for me, putting out 20 open house signs then picking them up).Best to you!

From repairs and maintenance?

Same carpet in b+ area will get 10 years plus.i stand by my sustaining maintenance/cap ex estimate and hope my response indicates why.  

Is your $$$/mo CF a true CF, or is that your net right now without any maintenance coming up?

The underwriters will be looking at similar property condition requirements (c4 or higher) of a conventional loan (no deferred maintenance or safety hazards which would affect value).  

Lesson: Keep a nice house and inspect before the inspector.Inspections then occur annually and you don't get paid if your property fails until you pass again. 

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.