I'm going to have learn about all the references you made but it sounds like my attempt to minimize loss to taxes is not looking good.

Sounds like you have a Triplex (double in front and single in back).

But practically, sounds like you are beating a dead horse. 

(I do not believe that FIL will be very interested in using the proceeds as leverage for purchasing a larger property, but is more interested in a duplex/triplex of similar value).6) the wife and I would co-own with FIL, but actively manage the property Questions:Does this sound like a good approach?

Sounds like a professional.  

the code is the code.. if there is a code for variances I have a hard time believing that they can single out the current owner but let you as a new purchaser use the code for the variances.. that sounds pretty odd to me..

@Paula Ratcliff it sounds like there was already an account with "money donated from lot owners" - is that correct?

@Mauricio Rezende - Sounds good, just wanted to ensure that you fully understand the costs associated with getting your license so you're not surprised once you get started.

Contract callers sounds like a collection company that the debt was sold to.

It sounds like you might be in the lower income niche, which I do have a lot of experience with.