I want to make sure my in-laws are comfortable with their investment and that they have some legal right to the assets /liabilities of the business but not sure how to proceed.Should we look into adding them to the title or put the house in a family trust where the ownership is clearly defined?

FHA defines first-time homebuyer as "an individual who has not held ownership in a principal residence during the three-year period ending on the date of the purchase."

@Andrew Semler Start by clearly defining and quantifying your goals and criteria.

With accelerated you can depreciate the land portion over 15 years and certain components of the building (I think HVAC and other mechanicals?)

These might make the project a "failure", but it doesn't knock you out and you learn to sharpen your pencil.We can tell you all of our stories, you need to define your story up front and what failure looks like.  

(that ruling has some pretty defined criteria that many tenants wouldn't qualify for)If the tenant tears up your notice without reading it, that doesn't mean it "doesn't count".

As was stated previously I think the main thing is making it clear to the owner that you are an agent and what your intentions are, and making sure the paperwork you and the owner sign clearly defines that.

You can definately make it work using the BRRRR strategy!

When I see such vastly different types of markets on someone's list, it usually indicates to me that they haven't clearly defined their objectives and criteria.

If you define the purpose of the land that should help with selling it.