First year teaser rate was 1.99% for 12 months and the remaining nine years of the term of the HELOC had a rate pegged to the Prime Rate (currently 3.75%). 

Often properties that are overpriced remain on the market past the first few days of listing frenzy and may be negotiable.

and after the increase the rent will still remain significantly under market price.

They say its as easy as that, but I remain skeptical.

These scenarios typically look something like this: she effectively gives you the property or adds you to title, her loan remains in place, and one of you brings the loan current and resumes making the payments on it. 

The down side is that if tenant [T] leaves and tenant [B] remains you then have to go through the process of evicting [B] which will be more complicated if he is not a registered tenant.

So basically I think that yes you were not done any favors, kept in the dark and pushed out about 3 weeks from closing, I think deciding if you want to remain with that agent etc or working with their broker are good internal conversations for your family to have.

The schedule E items are restricted to income and the remaining expenses carryover as a passive activity loss to be use when you sell or when your income is low enough to deduct losses against your income.  

LOL... roll of the dice I guess but when you take a city that has over 50% of all their residence are rentals. its only a matter of time that virtually all areas fall down like this.. and only the Owner occ areas if they can indeed stay owner occ remain viable long term.. its an issue nation wide.. as we turn into a country of haves and have nots.. the MAN owns the homes and rents to the people. the people have no respect for the man.. its a scenario you Kiwi's probably don't understand until its too late

human remains... antiques worth hundreds of thousands... 25 abandoned cats?