When we sell timber rights, it's land we are not actively doing any form of any operation on. 

Her caretaker has decided to take over the property and is now an active squatter on the residence and has become quite the problem child in the neighborhood.

This will work for ordinary losses, but not from negligence or unlawful activity.

But choosing a head not to be on one or two may turn out to be the one that gives you activity

So you may not NEED a lease signed for your primary residence already, especially since that's a lot of stress to find a new tenant and have a lease in place while you're under contract on another home.

If you are not in a good neighborhood, you will not be attracting great tenants and sharing a duplex with someone can be a highly stressful and unpleasant experience, especially if the structure is not truly conducive to being a duplex.

Selling could net ~$60K after costs, relieving financial stress and providing a reset for future investments.

You materially participated in the activity for any 5 of the last 10 tax years.6.

This does not mean actively acquiring but rather considering valuation, market demand and rents, and potential ROI. 

This is what I am encountering, in the current Mortgage Industry.If you think you will go FHA, Conventional, FHA 203k, etc. and then Quit Claim the property, to a Corporate Entity, or a Land Trust you run the risk of the lender discovering a Title Transfer occurred and activating the "Acceleration Clause" or "Due on Sale Clause" that requires the loan to be paid in full, within 'x' number of days.