Self-Management:Pros: Saves money, offers control, and builds tenant relationships.Cons: Time-consuming, stressful, and needs expertise.Hiring a Property Manager:Pros: Saves time, provides professional expertise, and market insights.Cons: Costs money, less control, and finding a good manager can be tough.What about you?

We need enough money for one of the owners to purchase another home or negotiate he stay living there. 

Private Money: Does anyone have connections or suggestions for private money lenders who might be willing to finance the $200k?

You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property.

Being a first time home buyer as well as having the home be owner occupant I was able to only put 5% down through money I had saved throughout high school. 

I am not sure where I should start.So, if any of you wise individuals out there have any advice or tips to make this journey a bit smoother, I'd be incredibly grateful.

Close with hard money.  

In all honestly in your situation, I wouldn't put any money into real estate until securing stable employment.

From what we have been able to discover is that they have taken the money from the renters and have not paid cleaners.  

What does my in law have to do to like work wise to be my employee?