Such purchase can be financed, but the loan must be non-recourse according to the IRS rules. 

Based on 50% rule and Cap rate, it points to not being a great deal.

I can't speak to any hard and fast rules about material errors (my tax business is deliberately and selectively very small), but I would absolutely agree that encountering a material error (especially one that should have been easily caught before you ever saw it) every year is too much.

Out of FL...her state laws rule.

There are instances that you can currently expense it under the new rules that came out a couple years ago. 

That will determine what your offer will be.  70% is not a rule and it varies from 30 to 80 depending on heat.

For the most part, if it is reasonable for the rental it is deductible (technically the rule is ordinary and necessary, but for practical purposes it is that the expense is reasonable).

California is a consumer state, so my guess is that the rules/laws are as liberal as they get in favor of the owner.As you stated, the lender doesn't HAVE to do anything, but I would think it'd be worth a call to the lender to discuss loan modification and/or document the process by going online and completing their form. 

Each site has varying posting rules which doesn’t make it easy or fun but necessary to get the word out.

The trustee must follow the rules of the trust.