So instead of gifting me the property she is deciding to sell me the property for 100k which is what she owes plus interest and that would pay off the reverse mortgage.

You get the benefit of the homestead exemption plus having tenants paying some of the mortgage (if you can find a fairly priced property...not easy in south Florida!). 

Pay your house off then only buy investment properties in cash. 

After 8-12 years, they need to sell 1, re-fi one and pay down leverage + keep more cash reservs for cycle 2 of capex. 

My market is seasonal and I was begging for enough revenue just to cover my mortgage so I wouldn't have to pay my own rent AND a mortgage. 

Is it normal for the lender to stop paying the property tax?

I am targeting homeowners with dilapidated homes that need repair and offering to pay for the rehab and split the profits with them at the end of the project after the sale of the home. 

she cannot pay rent by herself.2.

It's 30% more than I expected even though I was expecting to pay more than I would've just 3 or 4 years ago.   

But if the county re-assesses every 3 or 4 years, you will pay market prop taxes soon enough.I’ve been an investor for 46 years and this is NOT something I would do.Over this time, I have seen investors get themselves in trouble by being “too smart by half” often with creative tax structures that end up causing trouble but this is a another danger zone in my mind.I’d think long and hard before embarking on what you propose.If the acquisition doesn’t stand in its own merits and one needs to resort to chicanery to make it work maybe it’s not a deal.just my two cents.good luck,Arn