This is an investment property of the seller, not their primary residence.

The property either has to be zoned a commercialZoning or - you have to own both HPR parcels and have one be a primary residence .

@Carl RowlesI recommend a HELOC or Heloan on your primary residence or the rental if you have enough equity in either.

I do have some balloon notes on a few properties, and I’m wondering if banks might see refinancing as risky since my primary income now comes from my rentals? 

Just be sure to clarify that she isn’t a leaseholder but is authorized to reside in the unit.If you’re concerned about liability or want more peace of mind, you could ask the primary applicant for additional security, such as a higher deposit, depending on what’s allowed under Colorado law. 

Typically, the tax is based on the assessed fair market value of the property at the time of the transfer, even if it’s not a traditional sale.

My primary residence is an apartment I rent in Brooklyn NY.

I have a primary home and a rental near Portland, OR.

The only other advice that I would give is if your primary motivation is to save on taxes, don't do it.

The challenge, as you’ve discovered, is that traditional HELOC lenders typically want the property titled in a personal name rather than an LLC.