Agents can also run some quick analysis for you, but you don't want to exercise them if you don't intend to use them or at least strongly consider their services.

Makes sense really because the LLC is not who they vetted and lent to, but the reality of the situation is that they very very rarely ever exercise their right to accelerate the mortgage because of that.

If the realtor is a relative and that's why she is involved what is her role exactly?

That will and should have a significant role in your planning.Also, like @Gino Barbaro mentioned, you need to define your funding strategy.

It would stay in his name until you've exercised the option to buy at the end of your agreement.

Then on  lessor's death, he exercises his option, offers to buy from the heirs, with the right of first refusal, he gets first dibs, though the heirs can sell to someone who offers more.

We have plenty of tenant interest at asking rent price, but I am reluctant to enter the landlord role. 

@Logan LarochelleUltimately, everything you report on the return can be questioned by the IRS...will they...Your role is to report an accurate return based on the tax laws provided to us.If the IRS questions anything you should say you are excluding the gain via section 121.Show them the closing documents on the day you purchased the home and the closing documents when you sold the home.Then to show that you lived in the home for 2 years - show them the receipts of utilities that are in your name.Likely they won't audit you - but in the chance that they do - you should at least have the documentation.

If you're not clear on your role in the process and what your process is you will experience a lot of setbacks. 

How can I find out what they really need to make this work, without the exercise in salesmanship?