But I do taxes, so I see the sad results of investors trying to "save" on bookkeeping.

I'm fine if they are not in OH as long as they understand local city and municipality taxes and requirements. 

(For the purpose of tax benefits and appreciation) They are a little older homes and in maybe a less desirable part of town.

If you turn it in to a rental you’re giving up the tax free gain.

I've gotten unsolicited compliments from multiple tenants and they handle essentially everything you'd want including getting ready for tax season for a very reasonable cost. 

Most investors still want to invest in the city because of the relatively low tax rates. 

If she is going to live out her days there, it is "tax wise" better for you to inherit the property than for her to change ownership to you while living (it's a thing called a "stepped up basis" (look it up).

I can't tell you how many new clients have come to me that lost thousands in tax savings because they didn't talk to a REI tax specialist. 

This all gets turned over to our CPA for tax prep.

We heard that there is a way to rollover this money into the downpayment without withdrawing the money directly and it being taxed as an income for my grandmother.