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

A couple of thoughts specific to condo investing:1) Be sure to include the condo fees into your cashflow analysis, and budget for potential assessments as projected capital expenses2) Make sure the condo association is solvent - a good litmus test is whether or not the units are approved for FHA financing3) Make sure the condo association rules/regs allow for rentalsGood luck!

Without responding with respect to your zoning and what is allowed locally, I will discuss what is allowed on state level because i believe it will allow what you seek.In 2025 SB 1211 (Skinner) – Multi-Family goes into effect allows an ADU (I think it specifies detached but question if that is a requirement) for each legal non ADU unit up to 8 units.  

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?

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

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

Analyze deals, get pre-approved for financing, and set goals.Good luck!

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