However, NY state law limits the increase in assessed value is capped at 6% in a year or 20% in five years. 

I understand where you are trying to go, but what scares me in your scenario is that if something goes wrong in your life (illness, job loss, divorce, etc) you now have your personal house at risk. 

Most newbies that have herd mentality are buying those now.If you are trying to get safer investments you might want to buy brand new builds in a subdivision in a nice area stage 0 to 1 of development.Example you look at 2 options:Option 1 - Buy a house for 75k (Class C) that after mortgage payment is supposed to generate 150 a month income or 1,800 a year.Down payment 15,000    Result: In a few years rent growth in lower income areas is more limited due to income earnings.

You are already in over your head and it's better to cut losses than to let it sink you and your credit.

I am waiting to vocalize my intentions until we are inside the 90 day time limit she has to renew, which is 13 days prior to my closing but I would need to get an agreement in place prior to closing. 

@Walt Hairell Your options are limited with a mobile home (manufactured housing is the new PC word).

If you foreclose on a property and want to keep it as a rental then that is OK but just be aware of the limitations. 

Bought a house with a VA 100% finance in an area without researching and had to rent it at a loss for almost a decade before I could finally sell it.  

In a limited sense, I'd guess that the money you spend that will get the greatest return is cleaning, mowing, and painting. 

This house is outside city limits so no permits needed.