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.

There are less taxes in Alberta too.

If you can purchase this home with private money or seller financing and get a $110k loan, then you could do a rate/term refi right after so do a 90 or 120 day note to secure the property and get it in your name, then refi into long term debt using the full appraised value. 

So all of the gain and depreciation recapture are initially still tax deferred.However, like Joe said, the down side is later when sold  you lose the 1031 option. the client will pay tax on all gain and depreciation recaptured from before the 1031 also. 

So why work, why stress herself out, take on student debt, hours away from family doing that 9-5 all to achieve about $80kyr.

I am looking to purchase real estate for both investment purpose as well as to offset as much tax liability as possible. 

There are auctions to sell cars, police auctions, tax impounded auctions, antique auctions, etc.

I do intend to stay close to home - but home provides only annual opportunities and I’m looking for year round possibilities with tax deed properties. 

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

Home went to tax sale county kept excess proceeds.