Buying my M-I-L's home.

[Chris Greer]

I am looking at buying my mother-in-law's house and turning it into a rental.  She is actually moving in with us.  The house is payed off and she is willing to carry the loan.  She had been in the house for 40 years and it needs updated and some repairs.  Market says it's around 80k-85k but wife and I think 50k is what we would pay as is.  M-I-L is fine with that price.  Is there anything I need to worry about the government thinking we are taking advantage of relative?  

Do we have to get an appraisal?

What else do I need to look into?

Thanks