The requirements are VERY specific by statute, but if done right, the lender steps into the shoes of the taxing authorities. 

That 2.7% rate is pretty special...If I were in your shoes, it would depend on what I could leverage that 200k into out of state.There is ample opportunity here in KC (my market...I work as a Realtor here and own 3 SFR as investments).

Try thinking of the situation in their shoes, why would you let Timothy have this house for free and keep the mortgage in your name?

I was in your shoes 4 years ago and took the leap into real estate investing. 

But if I were in your shoes, I would keep the quadplex, hire a PM since I'll be out of the state and then run the numbers on what I could do if I pull some equity out with a refinance. 

This is also for those who might be in my shoes.  

(He's also known for some time why I longer give his father new projects: because his father -also handyman, not a contractor - kept quoting thousands of dollars per project despite knowing the CSLB rules that govern handymen and their work in the state.)How would you deal with this if you were in my shoes?

Given experience, feel free to share where you would you start if you were in my shoes and if you're willing to have a further conversation to help me get going!

@Robert S. sorry you're experiencing this--I've been in your shoes, and it's no fun.Luckily, I have extensive experience with this type of issue (I learned the hard way when I bought a property that was basically built above a subterranean river that caused three basement floods in about six months!). 

What would you do if you were in my shoes and just starting out?