I had done a COR from the ones I had, to buy additional ones.

I have been lucky enough to bet on a lot of good investments over the years.

@Nhat Tang I looked at 75215 and 75216 via my Power BI map as they were top 10 best zipcodes to invest in for cash flow, but after looking in deeper it seemed like these were like C- or D class neighborhoods.

Your CPA is probably going to be your best bet on any tax questions.

For C or even B class properties, don't try to cut costs on property management3.

This would typically be reported on Schedule C or Schedule E; however, certain alternative income streams could be reported in other places on your tax return.Partnership: Reports on Form 1065 which issues a K-1 to each partner who must report on their personal 1040.

A 4 unit in a B area will be easier to manage than a lot of single family homes in C or D areas.  

I had already considered option C or just paying the arrears for her but the loan would still remain hers.

If the extra income stream is all you care about, it would be easy to play with the numbers and negotiate a deal with an alarm company to get less (or no) money upfront and instead agree on a lower monitoring rate.The numbers make more sense with the higher volume of properties and obviously the situation depends on where your properties are located (A, B, C, or D class neighborhoods, etc.).

But that is  no reason to give up altogether....So in those high price markets I think you either bet on the appreciation or invest in outlying areas....