•Instead of transferring the title, consider using strong landlord insurance, an umbrella policy, or a land trust (with your LLC as the beneficiary) for added liability protection.Your FHA Loan Potential for Another Property•Since your first home is already a rental but was likely purchased with an FHA loan, you may still be eligible for another FHA loan—but only if you meet one of these conditions:•You relocate at least 100 miles away from your current home.

Never heard of them but trust your gut!

Is there a market you have anyone that you trust that would be willing to help you out in a pinch?

@Jack PasmoreFor me, building trust and maintaining authentic relationships comes down to consistency and value.

Check with your trusted tax professional. 

Germain Act and using a trust for subject-to approaches that may work for this kind of transfer, but I’m not sure it totally applies to my situation.The previous replies stated answers to your questions, but some of the answers may not have been clear. 1.

It used to easily take 2hrs when I didn't have a trusted contact. 

At that time we could renovate the ground floor apartment and potentially turn it into (2) apartments for a total of (5).My questions come down to how do we deal with the existing 40k mortgage, whether we can make it work so her parents aren't paying much in rent, if anything at all, and whether or not we set up any legal entity, like a trust to help the legal situation of paying off her sister down the road. 

@James Thompson Transferring property from your in-laws to you can be done through a gift, sale, or trust transfer, each with different tax implications.

Totally different policies and procedures.Sounds like you don't trust your agent though.