There are other factors that all key off the market/assessed value for that year: this is a 4 plex, no homestead exemption, millage rates change for county, city, school board, etc.

About I week ago I served from previous owner asking that the city rescind the sale based on financial and medical hardship.  

I may end up doing something like that, but probably not UHouston, but rather a medical school or something.

Someone else can buy it and forgive the debt, but unless you qualify as to the tax exemption of forgiveness of debt being the same as income, it's not a get out of jail free card. :) 

Or, are we exempt from TILA and Dodd-Frank?

The plan is to buy a duplex all cash, utilize the cash out refinance strategy (probably via the delayed financing exemption) and then rinse and repeat until we cannot acquire anymore loans, at which point we would look to bring on partners.My question is, would this be the most cost effective option when pooling funds?

However, if she is getting up in years or has health issues and she is disposing of assets to qualify for medical benefits, a Trust won't help her.

The back taxes are because she was claiming homestead exemption on 2 houses. 

I was reading up on the transfer tax in Philadelphia and it states in an area of the law that a transfer from a parent to a child is tax-exempt.

However higher property taxes when combined with a possible loss of homestead exemption will increase your monthly carrying costs on the property.If your plan is to return in 5 years then you may want to run some calculations on the carrying cost of the property versus what you think a similar (or same) property might be worth in 5 years.