Only if we file taxes jointly?

Taxation status and company legal formation are two different things.For a disregarded entity you will have no tax filing.

@John Craven You can hire an accountant anywhere, as long as they are well versed with the state and local taxes.

Plus, I wouldn't get any tax advantages being in an IRA. 

i want to buy a retirement home with self directed ira funds. how can i do this without taking the money out and paying tax on the withdrawal amount?

Based on the report, your loan is only $140,000 and at 15% you are paying $1,750/mo.Rental loan of $165,000 @ 6% amortized over 10 years - Monthly payments are $1,832 before taxes and insurance.

The tax role says it's still in her name.

Presently they are zoned as condominiums and taxed accordingly, if recombined I assume we could file for an abatement and get the taxes reduced.   

I cant be the first person to think of this...In my city there is an owner occupant property tax exemption on the first $50,000. 

When you sell there is a recapture tax based on that depreciation taken.