A trusted mortgage broker told me that if I stay in a my second property for at least one night, I can consider it a secondary home versus investment property and therefore get a better interest rate. 

It is extremely unlikely.

Nothing good will come of it trust me. if they are month to month lease then start to increase the rents if the market will bear it.

He is extremely knowledgeable but also in high demand.

@Paul DuncanIRA Services Trust Company is very reputable and they have been in business since the late 1970s.

I have my fathers trust in this matter so using it as an opportunity to help him and learn for myself as this would be a new type of transaction for me.  

The new owner must put them in a trust at a bank or in an escrow account.

Hire a lawyer who's advice you think you will trust, if you after hearing the lawyers advice you don't trust the lawyers advice, fire the lawyer and attempt to hire a lawyer whose advice you will trust. 

Her half would go to her heirs and yours would go to you.Possibly put it in a trust and you could be joint administrators of the trust....best bet is to probably consult a real estate attorney in your area.

She was extremely rude and actually told me that I should end the agreement- by buying out the rest of the contract (pay them 100% of their fee for the remaining 10 months on the lease).Does anyone have an experience like this?