However, we can tell you that it doesn't sound like something a beginner should take on.

Buying an investment with existing tenants may sound nice on the surface but it can come with a lot of problems.Buying a vacant property and finding your own tenants has additional challenges because you don't know what you're doing.I recommend passing on both deals.

It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees.

@Ryan Kuja Sounds good to me!

Maybe they trust title companies more than attorneys.You would think that the new lender would be satisfied that there is a closing and wiring information was sent to the old lender showing that the loan is getting paid off.It sounds like you just need to wait out the time.

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?

That could be a great way to find and stay engaged with local investors and opportunities. http://www.biggerpockets.com/alertsYou can also search for other investors in that area and follow their journey on Bigger Pockets here: https://www.biggerpockets.com/search/usersAlso, be sure to get plugged into the podcast - it's been a wealth of education and a huge confidence builder as me and my husband have pursued REI and built our portfolio.