Is this correct?

You are mostly correct In your concern .

There are good reasons to have a local agent working for you though, they might bring you deals you missed or where otherwise unaware of they also ideally can function to double check everything to make sure everything is handled correctly and finally the very best agents also have great relationships with vendors and can help you through the whole process. 

If she sells the house to him it could make her ineligible for medicaid benefits if there is a profit correct? 

That said, the market will always go through it's normal cycles of appreciation and corrections, but longer term the tend is up. 

but it does kick the can down the road.Best solution:  REFI cash outof your other cash houses and fix this one correctly and get top rent.You are looking too closely at cost avoidance and not at what you'd get if you found the cash and properly fixed:  better tenant, top rent. 

It won't make you immune to the negative impacts of a a correction, but you'll be in a much better position than anyone buying for appreciation or trying to time the market. 

Let CPA know about categorization so return can take the deduction for the correct properties.May or may not want to shuffle which entities hold what....may inclination is "if ain't broken, don't fix it" and leave entities "as is".....Between QB and return, can distinguish what is a T/B and what is not.

Will the market correct, slow, stall in 2019?

(It will sell, for sure, if priced correctly.)Of  course I would be doing everything legally to protect my license, etc.