This will reduce your rental income and may even generate a rental loss.The article below provides a good overview.http://www.nolo.com/legal-encyclopedia/tax-issues-when-renting-out-room-your-house.htmlCongrats on the first property!

If the value is more than that, the excess reduces your parents lifetime gift limit.  

Equity costs you money...unless you access it, by selling the property (then you're starting all over again), or refinancing (which gets part of it out, but may increase the cost on the property too high and make the little "cash out" you get at closing not worth the cost each month in reduced cash flow.Try this.  

What I've done, however, is reduced substantially the ability of knuckleheads to sue me personally through the LLC. 

If market rent did not increase with the increase in the property's appreciation then a refinance may reduce your cash flow and, by association, your cash on cash return.In this scenario, it may be prudent to sell the property to extract the tied up 173K in equity and accept that you've made 273% profit on your original 46K down payment.  

Find out which expenses can be cut or reduced, then pay off those credit cards one by one pay off the one with the smallest balance first and so on until all of them are paid off.

I grew up around housing as my dad is a general contractor turned energy auditor, my mom worked in low-income housing, and my uncles and grandfather are developers and landlords as well.

Seems like you already offered to do whatever you can to reduce noise - I'd let them fight it out. 

Buy the mortgage at discount and reduce the payments.

My background is actually as an ARchitect for over 35 years specializing in Energy Efficiency.