Its a very poor situation for the original owner to be on the mortgage for years and years without the benefits of ownership and the control.  

Then rent the bigger home out using a property manager, allowing her to possibly cash flow and maintain that asset and let it continue to grow in value.Encourage her to consult with a CPA or tax attorney to explore the best strategy tailored to her situation.

Germain Act and using a trust for subject-to approaches that may work for this kind of transfer, but I’m not sure it totally applies to my situation.

@Jason Velie will know exactly what to do in this situation.

Based on your situation, you will likely need to recapture the depreciation when you convert the property from a rental (STR) to your primary residence in 2025. 

Financing might be a challenge.I would recommend consulting with a attorney, loan officer, and CPA to discuss your specific situation and determine the best course of action. 

So I get your hesitation to be too demanding and your desire for the problems to go away as fast as they can, however since you have NO property manager ( I don't use one either), it is incumbent that you take a more ACTIVE approach with management of your property.Let's review your situation.  1st time leak occurred, you sent a plumber over to find the problem.  

Situated on a 0.52-acre lot, the property provides a spacious environment.

Hey there @Michael Labudzki - Can you help me understand your situation better...- Do you have 200-250k cash, or is that what you can get with your loan amount?

@Jonathan Greene and @Nathan Gesner, you both illuded to sharing more about my current financial situation and background.