But, I can't classify it as an owner occupied if their name is on the deed and their name has to be on the deed if the mortgage is in their name. 

So as long as I classify myself as a business(LLC, license, however that's done) a seller can allow me to take care of repairs and maintenance as a master lessee in a sandwich LO scenario? 

So in terms of the A/B and C areas, how would you classify and/or describe those.

As mentioned in a post above, you don't have to roll everything into the replacement purchase, but the IRS will assume that you rolled in all of the basis, so that anything not rolled into a replacement property will be classified as boot.

Can I classify it as a vacant rental unit and take all my usual deductions, depreciation, etc??

Maybe that's a moot point, who knows :-)  But let's say I classify anyone with my experience level (or less) as "amateurs". 

I say "likely" because there simply isn't enough information to 100% affirm which way this will go.Her being removed from the title in exchange for compensation can pose issues as it can be classified as a sale.

Directly held real estate is generally not classified as a security.

For instance, if I hypothetically made $500,000 in a tax year, and only classified $50,000 as "Income" and $450,000 as "dividends", I am not aware what the self-employment percentage amount I would be avoiding having to pay on the dividends portion, and if that percentage is savings would be for the total $450,000 or a portion of it.

I used to spend every Sunday reading the classifieds for income properties and dreaming of all this passive income (as we have all discovered, there is nothing "passive" about it!)