How have they accounted for reserves / contingency when things don't go as planned. 

Alternatively, yes you could sell, pay taxes on the gain, and use the proceeds to help your mom directly.Would suggest for you to talk to a CPA and a 1031 specialist to confirm your best move!

Most likely your conclusion is correct, but the only way to confirm it is by having a real estate accountant review your tax situation.Also, please read this introduction if you want to better understand the concept:https://www.biggerpockets.com/forums/51/topics/1075919-five-...

Reason is a Heloc generally carries a higher rate on a shorter term and "Can Never" be used as an "Asset, or for PITI reserves" which are both required when you buy an investment property. 

Our privately owned and centrally controlled monetary system, known as the Federal Reserve, and the legality of Fractional Reserve Banking is on a crash course for a battle between Freedom (Property Owners) and Royalty (the banks). 

Have you confirmed you can rent the basement.

It does seem like it is such a significant misrepresentation though, I wonder if getting some confirmations in writing helps.

See what down payment and reserves you need and make sure you have that in place or if not, you know what your goals are for 2025.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

If the tenant can’t prove the dog qualifies as a service animal or ESA, then it could be a lease violation.It’s a good idea to request documentation in writing and confirm its legitimacy.