Rainey said she understood a man and woman had died at the address.
“Last night I saw them [police] take two or three kids out of the house and put them into a car,” she said.
Rainey said neighbours were “very saddened” by the news.
A former employer of the woman who died told Stuff she was “the most honest, reliable, lovely young lady”.
“She was just the most beautiful person. Whoever did this to her needs to rot in hell.
“She was like a daughter to me.”
The employer told Stuff she had known the woman for six years and was informed of her death this morning.
“[I] spent most of the day crying. I’m really worried about her kids … devastated for them.”
The Taupō area investigations manager, Detective Senior Sergeant Ryan Yardley, said the public would notice an increased police presence in the area over the coming days.
“If you saw any suspicious activity or have any information that may assist police in our investigation please contact police by calling 105 and referencing event number: P059649530.”

Police tape surrounded the property this morning, with two police staff guarding the property.
An adjacent walkway was also blocked off.
A neighbour said they heard an ambulance arrive about 10.30pm but “didn’t hear any commotion before that”.
“Woke up this morning and there was the yellow tape.”
He said he knew the people at the address and went over to visit them sometimes.
He described the street as “pretty quiet, pretty peaceful”.
Taupō District Council Tūrangi councillor Sandra Greenslade described it as an “absolute tragedy”.
“We all know each other, we all know everybody. It is a situation that will probably affect a lot of people.”
Benjamin Plummer is an Auckland-based reporter who covers breaking news. He has worked for the Herald since 2022.