I’ve considered lots of options (all real estate based since I can do a 1031 exchange and avoid the capital gains tax).

His mother took over the payments of the property taxes of her sister's house after her sister passed away about 30 years ago.

Hey Dina, The extensive repairs discovered during inspection could ultimately provide a tax benefit by increasing the depreciable basis of the property.

How would I transfer home insurance and property taxes without alarming lender on subto?

I can't imagine the lender giving them the money back "under the table", because then the lender is paying income tax on that money!

Rentals were a very attractive tax shelter.

@Donald Aleshire - conventional lenders do not require W2 income, they require a 45% DTI based on the income you reported on your tax return (last two years average)

Ones located in Greensboro Nc and the other is located in reidsville Nc the fees I see on this soft quote are: origination fee, underwriting/processing fee, 3rd party closing costs, 6 month tax impound, 6 month insurance impound, looks like 11-12k in fees alone.  

There can be a tax implication in one form or another.

If I sell the home, I could net $400k and pay no tax.