The case was being dragged on in court, all the while we were receiving harassing notices stating service would be terminated and a lien would be placed on our property.

If he received no compensation, yes...as long as he doesn’t represent anyone.

., former employer 401k) to a solo 401k are not reported on Form 5498, but rather on Form 5500-EZ, but only if the air market value of the solo 401k exceeds $250K as of the end of the plan year (generally 12/31); When funds are rolled over or transferred from an IRA or 401k to a self-directed IRA, the amount deposited into the self-directed IRA is reported on Form 5498 by the receiving self-directed IRA custodian by May of the year following the rollover/transfer.

If, however, you are buying it with cash and without an inspection, you could tell the seller that you can close in a few days, which might let you negotiate for a lower purchase price.In the scenario where there is a loan with interest, and the interest is all your father-in-law receives (he isn't getting any of the profit after the sale), then he is indeed a true lender and this is a true loan/mortgage.

The lease received from the prior landlord states that the tenant did not give a security deposit, her lease is up for renewal in 6 months.

Is there any other income you receive that we haven't previously discussed?

Over time, as the property value after rehab seasons, you pay down the note a bit, and receive additional cash flow, re-configuring the financing on the property might produce more bang for the buck. 

@Julio Fernandez You've received a great response from @Joe Villeneuve.

So below is the quick and dirty overview of my situation:- claim #1: submitted earlier this year for substantial water damage in LA rental property and just received payout. 

Annual additional expenses run about $1000 per year, to include insurance, maintenance, etc.