Based on the info I'm gathering and additional research I've done I will shift my focus away from the C properties. 

Additionally, the trust language should designate a substitute trustee who would have taken over the trustee duties after your mother passed.  

The ability to leverage your 100k over multiple projects makes it more attractive for additional RE income and also long-term appreciation.

The spread enables me to get low or no cost insurance.Lastly, this isn't my personal example but my partner used notes to pay for the addition on his house.

Additionally, I did not see you include any Holding or closing costs in your data.  

I feel comfortable with basic work such as paint, floors, kitchen upgrades, and maybe adding a bedroom/bathroom with the help of a contractor.Here a rough example with figures I just made up:Purchase – 120kRehab – 15kARV – 170kForced appreciation on rehab – additional 35k or 233% of rehab costDoes this sound right or way off?

Your best bet is to network with investors and mortgage brokers that are investor friendly.

If i don't pay anything for the audit defense, then I do not have a deduction.Furthermore, if the CPA made an error that resulted in additional tax and interest/penalties, then I would pay the extra tax but expect the CPA to cover the interest/penalties.

Additionally, I'm assuming "paid deposit" is earnest money, or no?

The property will be obvious more attractive without additional fee charged to tenants.