@Chris Grenzig  The chart on Wikipedia is interesting, its showing the population gains/losses from 2020 to 2023. 

2️⃣ Property Tax Deduction: Claim up to $10K for state & local taxes.3️⃣ Capital Gains Exclusion: Sell your home?

From time to time I will hear of people who utilize it well and gain business from it. 

This will lower interest costs and free up future cash flow for reinvestment or reserves.Tax Planning: Work with a CPA to mitigate tax impacts from principal-heavy payments and potential gains.

If you have lived in the property for two out of the previous five years you could qualify for the 121 exclusion, where you get the first $250k ($500k if married) of the gain tax free.

It was our primary a few years ago and we decided to sell so we could escape the capital gains tax.

What education should i gain before purchasing my first rental property?

I have suspended Passive Activity loss that would reduce the gain, but not eliminate the gain from tax POV.

You could point out that since it's a rental for the last 12 years, she will have some serious capital gains to pay with a regular bank-financed sale, and with your proposal, that tax will only come due after the balloon payment. 

Trying to bend the rules will always come back to get you and could end up costing you more at the end of the day than any benefits you gain from it.