Carpet padding is too thick and spongey and will allow the piece too much movement and they will eventually start to fail due to the stress on the joints.

And only mentioned my house in our tax returns.Now the IRS sent me a letter...regarding my mum’s house. however my married joint filed taxes 2017 has net income of $20,000. 

Our leases stated we were jointly liable for the rent.

I have been on my hands and knees so much smelling around the whole perimeter.

Moving because of work, increase in family size, leaving a jointly owned property.

They are not your legal counsel and cannot act as such.This type of joint venturing with yourself is promoted by some as safe and clean.  

The numbers are fair in my opinion but I would structure it as a secured loan and a joint venture agreement(two separate agreements).

Pragmatically what happens is you expand the Fannie cap to 20 by putting each property/loan only in one spouses name (we can thank feminism for that, once upon a time women didn't have individual credit, only EITHER joint with their dad or joint with their husband).

If all the obvious ideas don't work, then you simply form a joint venture with your landlord to get coverage.

@Dominique WilsonI am not sure where you read that you have to have the property for one year in order to avoid capital gain tax.If the property is your personal residence and you owned and lived in the property for 2 out of 5 years you may be eligible to sell the property and avoid tax on $250,000 of capital gain($500,000 if married joint).Furthermore, is the $20,000 of equity that you mention the 20% down that you put?