This is called "self-sufficiency test" and FHA requires it on all 3 and 4 unit properties. 

How sufficient, secure, and stable is her income source?

First the disclaimer: one turnkey property (or DIY rental) will not a sufficient income make.

Hey Travis,You can buy another investment property right away using conventional financing assuming you have sufficient down payment, credit, and down payment/cash reserves to qualify for another property.You can use your rental income to help offset your monthly PITI.

The issue comes when you're LLC isn't established enough to have a decent and sufficient track record yet.   

I have excellent credit and sufficient funds. 

I thought perhaps to make a token offer to the daughter for a quit claim deed and have her or me report the death to Medi Cal and finding out how much is owed.

I see my six isn't sufficient. 

You Can Catherine but you will come up invariably upon the Self Sufficiency Rule (or SS Rule).

Generally, the normal documentation of the transaction is sufficient proof of the “per se” exemption.