We ran into some unexpected costs last year, so aren't able to contribute much to the down payment on the next property right now as we build up our savings again (DP will be her contribution).

If you have some money in the bank to cover unexpected circumstances (vacancy/repairs, etc.) and you know that you're going to struggle to put together the down payment for a multi-family, then beginning to build up some equity, experience and momentum (by taking action) isn't the worst idea.   

However, the question we have is, if she assumes the mortgage and her mom unexpectedly goes into care, can the government force us to sell if it occurs in the five-year window?

Whether you have questions about specific investment strategies, market trends, or just need general advice, feel free to reach out. Let's

I'm glad to hear it's working out :)@Ola Dantis That's an excellent point - at this point, I don't plan on carrying a balance unless an unexpected expensive repair comes up. 

If rates unexpectedly increase and the loan term is coming due, guess what? 

This part was ok although it was unexpected because it's considered a "Hard Money Lender".

Vacancies, unexpected maintenance and repairs, etc. 

I'm curious if this uptick is due to many investors being involved in hard money loans and now facing the need to refinance, unexpectedly encountering significantly higher interest rates compared to a few years back.

unexpected issues with the repairs?