I’m under the impression this is because if there is any rental income, it will go right to her care, not sure if she would lose the Medicare benefits. 

Just a FYI be prepared for it to sell at a discount,Jay- I have seen people buying land notes for 12%-15% yield which is CRAZY and they are going to eventually lose their shirt once they go into default and the land value is repriced.Thank you for the info.

I'm still going to lose all my CF on this rental it looks like. 

The fact someone wanted to show a 20% versus a 15% return by using a lower interest rate, meant increased risk, which you either win or lose, since you're gambling.2. 

If you plan to scale at all, that will result in an excessive number of accounts and cards to keep track of.

Turnkey is safer, much harder to get your net yields to pencil, and you lose out on building immediate equity through renovation.

I would like to group both of these properties in some sort of limited liability corporation, but I think I lose my tax exemption once it's in the LLC.

Warren Buffett has a rule 1 of investing, which is "don't lose money

In ID I dont believe there is any high balance FHA limits that I know of (Coeur D'Alene, ID).Then again I dont think you need high balance limits anyway as the regular limits of FHA 4 unit property are well in excess of 1.4M and Im pretty sure the fourplexes in CDA arent that high unless you've found a unique Specimen of a fourplex house hack strategy.

I assume you are probably losing a few of those bedrooms for living rooms, kitchens,  hallways, stairways etc. if converted from 2 to 3 units.