Taxes/Insurance- depends a lot on where you are located.The homes themselves- POH or TOH? 

If you can get all the bedbug containing furniture out of the place and it will sit for awhile (or let it sit while the other repairs are done) you may be able to avoid some cost, but if you want to get a paying tenant in sooner rather than later you will want to bite the bullet and get it well done.

I just started using it and so far the owner info matches up with the county tax info. 

I am an agent and while you are partially correct - the majority of life insurance policies are structured for leaving the death benefit to the insured's beneficiaries.However, when a client asks for an 'infinite banking' policy, they are asking for a vehicle to accumulate cash that has tax advantages, moderate growth, liquidity and no exposure to market volatility.

But I read that there's downsides in doing that just don't know exactly what- capital gains tax, etc. also I was told to open up a new LLC and use my current LLC as the manager.

Then rent the bigger home out using a property manager, allowing her to possibly cash flow and maintain that asset and let it continue to grow in value.Encourage her to consult with a CPA or tax attorney to explore the best strategy tailored to her situation.

I make around $110k+ per year, live off around $75K, have a mortgage ($1900/mo for rent, escrow, tax), around $40K in equity, and no other debt. 

Be sure to hold a hefty reserve to handle on-going maintenance, capex, taxes, and insurance.

And she’s the one that released the latest tax rates and year to year comparisons in September of 2024.

For several reasons (property taxes, politics), I would prefer to begin real estate investing somewhere other than locally.