Good suggestion by @Drew Sygit to consider section 8 tenants for possible cashflow and lower vacancy. 

I'm open to suggestions and thoughts.

I suggest you enter private money goldmine in search botton at top right of the screen and read the previous posts....here is one that gives good perspective as well as a link to legitimate private lenders.http://www.biggerpockets.com/forums/92/topics/1488...

Any suggestions on companies that would be willing to insure without charging 30+ thousand a year??

I have thought about Fundrise (medium success when I invested there), Crowdstreet (I have not invested there but might consider), farmtoghether (20k invested there already) and groundfloor (bad experience so not looking to invest there).Any advice will be appreciated.There is no greater wealth than peace of mind - Buddha - If it's just a redeployment of capital issue into a different market, I would suggest either syndication, or (this is going to sound crazy) into cattle.

I am open to hear any suggestion or advice to make better investment decisions and get more tax benefits like setting up an LLC .

You all must agree to the same thing or else you will just end up fighting about what to do.Since your mom doesn't have it in a living trust, I suggest you do that right away.

It couldn't hurt to call a couple attorneys right away to see what they say in terms of cost and suggestions for dealing with this quickly.In terms of mitigating any legal issues with your tenant be sure you are documenting every conversation you have had with the HOA in terms of asking them to make the necessary repairs.

But the rental too does have to meet the "active conduct of a trade or business" threshold, which does mean you wouldn't qualify to use section 179 if you have a rental that is managed entirely by someone else and you aren't at least overseeing it and making decisions about the management of it.I mostly disagree with the reply suggesting that you need to have an LLC to take the section 179 deduction. 

I'm just suggesting you be well informed:I loved reading Robert Kiyosaki's "Rich Dad Poor Dad"... it was extremely informative and eye opening... albeit told in a bit of a crazy way.