I understand STR is not legal in Oakland, but yeah the unit is on the more luxurious side.

As an investor/agent, am I legally able to pay a bird dog a flat fee or a percentage out of my profits ?

Here are some extreme cases that are mostly 21st century issues:- cannibus is legal in many states.  

I am dealing with a basement that had an illegal stove and they turned the legal 1/2 bath to a full bath. 

**Legal Documentation:**You'll need to work with a real estate attorney who specializes in condo conversions.

I’m contacted multiple times a week by individuals who buy lousy real estate in Philly and I hear “ but the agent told me” or “the wholesaler promised me” it was a legal use…the rents would increase…..I could rent this section 8 and achieve xyz rent etc. etc.  

First determine what your legal requirements are.

Is it as simple as signing paper work to transfer it or does she have to legally sell it to my LLC and if so what would we be looking at as far as being taxed on it?

I'd speak to legal and have them outline the state's laws.

Not giving legal advice, but moving out before the lease expires does not mean you forfeit the security deposit.