I'd like to just declare it as 'real estate'.

So... it was fairly simple for the courts and the legislature to decide that the owner exception to real estate licensing law should apply to people who hold options.

The one thing that I will say having managed properties in other countries (China and Russia) is that you need to have a firm grip on the culture and the culture surrounding rental properties, land ownership, law enforcement, court systems, etc. 

If it is court ordered, she should have a legal document and should be registering in her bank account as often as she says it comes in.

As a debt collection attorney who spends a significant portion of his time trying to ignore the hard work of other attorneys, I see a few different problems from the perspective of your vendors and maybe even the bankruptcy courts if your business turns upside down.

Which circuits do you browse for the tri-state region properties, do they still hold local court house auctions? 

I dont know if it is possible to simply declare your taxes locally with corresponding deductions and what requirements you would need ti be able to register locally. 

Wish I could say they will be short lived but the ball is in the manager's court

You don't need to think of all of them because there are lots of attorney's who have spent a ton of time in court dealing with these issues.

The divorce court doesn't have a mortgage underwriter vetting the credibility of the appraisals, but it has a judge.