I'm currently living in California, which the living cost is extremely high, 3-bed townhome with good schools typically costs $900k, and I can't find anything with positive cash flow.

I cant believe we were denied since SD was receiving unprecedented rain during that time 40 days straight of rain.

Just adding a couple of things for you to consider to add to your research - Regarding the basis step-up, you're correct that under current law, your mom holding it until her death may allow for you to receive it with a full stepped-up basis, washing out all the appreciation during her lifetime. 

Typical first batch of the loan comes within 3 weeks and it is approximately $30,000-100,000, the next batch comes 4 months after and so on and so forth.

My strategy in the past had typically involved minimal equity investment in properties to maintain a positive or net zero cash flow (as long as I wasn't losing money each month), thereby allowing me to claim substantial depreciation losses with little initial cash outlay.

(Typically 25x annual expenses)

I went through Allstate and got a policy with Tower Hill for my FL STR's - it was the most affordable of all the quotes I received. 

If you are paying a premium you better make sure the tenant is really strong (typically Standard and Poor's) BBB- Investment grade rating or better.

Cash out is typically going to max at 75%.

East coast you will typically find a land records division in each county.