If the market rents do not cover the mortgage, you may do a no ratio DSCR for a higher rate/reduced LTV  Which most likely the 1007 will be nowhere near the revenue generated by a PadSplit operation.

ADU's over 750sf receive reduced impact fees (25% of SFR charge).

When the price had been reduced to $680,000 I put in an offer for $640,000 cash.

If you need to get it rented fast, a great property manager would list the home for $2100 (below market) and get several quality applicants competing against each other to drive the price up to the max so you don't risk vacancy by starting out too high and gradually reducing to find the sweet spot.

This means you can sell, lease, or pass on the property as you see fit, just like any other property owner.Full Ownership RightsYou have the same rights as a Mexican property owner, including the ability to sell, lease, transfer, or mortgage the propertyLegal SecurityThe Bank Trust is a well-established legal mechanism in Mexico, ensuring your investment is secure and protected under Mexican law.Renewable TermsThe trust is set up for 50 years and can be renewed indefinitely, allowing you and future generations to maintain control over the property.Estate PlanningThe trust makes it easier to pass the property on to heirs, simplifying the inheritance process and reducing potential legal complications.Although the process might initially seem complex, it is entirely managed and supervised by a reputable banking entity.

However, if you inherit it through her estate, you receive a stepped-up basis to its fair market value at that time, reducing tax liability upon sale.Gifting it now has no immediate tax consequences unless its value exceeds the $18,000 annual gift tax exclusion (2024).

However, you'll likely be able to put more money in your pocket if your reducing your living expenses in a HCOL area.

What are your thoughts on the market now, post-covid and with rentals/prices at a significantly reduce price from last year?

I have some clients who prefer to have a PM for maintenance/contact/rent collection/general management and will place tenants and write leases for themselves in exchange for a reduced rate.  

If you have extra cash at the end of the month, then do double up payments on the mortgages so the principle is reduced and this will increase your heloc room.