AssetsAsk yourself: Do I want cash that depreciates with inflation and taxes, or do I want to build wealth?

The homeowner has direct title, can sell at any time and gets 100% of the appreciation and tax benefits on these houses.

The California government will deal with the damage the same way all governments do , they will find a way to raise taxes or get the Feds to pay for it ( that will be difficult with the new administration ) Here is what I find ironic , California has C.A.R.B. to pass regulations on vehicle emissions .

Also assessment never picked up those multiple sales and the parcel was being taxed at 8 acres. 

@Helena Goyvaerts it will be tough without 2+ years of USA tax returns showing you are profitable.Higher interest rates have negatively affected most lenders and many of them are getting more aggressive with offering more flexible programs. 

So I do not have a tax filing with the rental income on it yet.

Your best advice would come, for a Tax Advisor NOT a Tax Preparer (CPA).

If she gifts the home to you, you inherit he cost basis and owe all the taxes.

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

Note I strive to minimize cash flow because it gets taxed versus other RE return are easy to defer or avoid the taxes.