Make sure everything is in writing.

You do not need the property to be in an LLC or business entity to be able to take deductions, write offs, etc.

If your ponder writing reflect significantly better cash flow than the 50% rule, be sure you can explain the discrepancy.good luck 

You would just take over payments on her existing mortgage.Another option is you write the contract for the $215K that Zillow estimates and you tell your bank that the $31K down payment is coming from a gift of equity.

The handle writing the new deed and transferring as well for like $400 or something.

I am not sure I've ever seen where the tax writeoffs are different for STRs than they are for MTR's or LTR's in terms of writing losses off against your regular income. 

Though they did ask for a list of owner expectations (with space to write in) in our original agreement and I listed “transparency.”

I would consult a lawyer and listen to his advice but where I would try to direct this is the lawyer write letter to HOA that they do not agree with the HOA interpretation that the current CC&R does not allow STRs.  

If you decide on installing cameras then just like at your home it is a matter of brand preference and styles, etc. 

As you can tell by my writing I am not a financial wizard.