This really comes down to what your ultimate goal is. 

We won’t qualify to get another mortgage anyway due to either dti or income.From your investor expertise, what would you do in this situation?

What made you interested in investing in this type of deal?

And you've joined one of the best communities for all things real estate investing.1️⃣ Download this ultimate beginner’s guide: https://assets2.biggerpockets.com/uploads/user_file/file_object/1694/UBG_2018.pdf2️⃣ Read BP beginner books on investing: https://store.biggerpockets.co...Also read, Rich Dad, Poor Dad by Robert Kiyosaki3️⃣ Subscribe to BP podcasts or YouTube channel and watch their webinars. 4️⃣ Ask questions here on the forums.5️⃣ Visit (join) a local (and legit) real estate investment association.6️⃣ Consider joining a BP bootcamp: https://www.biggerpockets.com/blog/real-estate-investing-bootcampsI wish you all the best in your investing journey!

The lender is pushing you to do this to get an FHA loan.

We're setting this up for clients in Beta right now, would love to chat if you're interested.

This would effectively cover your mortgage and significantly reduce your living expenses.

See what others are renting for, the price yours accordingly.You can't do this once and know the market.

This is a great way to meet other investors and let it be known what you’re looking to purchase.

The IRS could apply this doctrine if it appears that the series of transactions are structured primarily to achieve a specific tax outcome, such as avoiding taxes.Regarding the 1031 exchange, while in-laws are not considered related parties, the transaction could still be scrutinized due to the complexity and nature of the other transactions involved.