It can be a nightmare investing out of state without the right boots on the ground.

@Islah Barney, If your mother was living in that house for 2 years out of the 5 year look back prior to sale, then she can sell and take the first $250K of profit tax free.If the gain is more than $250K then you could rent it for a few more months. 

Both on and off market - agents /owner occupants, local wholesalers/ investors, out of state wholesalers/ investors. 

myself I think its excellent far better than going out of country or some smaller city that you need multiple flights to get to.. 

We're living in times when franchises go out of business overnight, but healthcare will never be since it is essential. 

You can break it out by general RE activities and material participation.

What made you interested in investing in this type of deal?

The things that give a rental a value in cashflow are benefits to the tenant in the form of living amities. 

One thing to think about is if you rent it long term and then sell it, you have to pay capital gains taxes. 

I would suggest taking the route of option 2 or 3, so not only are you saving over 10k in rent per year but the residents help in paying down the debt.