Sounds like your agent wasn't experienced enough in the area.

Perhaps some time will provide clarity in one direction or the other. 

The only other options I can see are A) your mom partnering with you rather then selling the property to you - you become 50% owner and bring the funds and management to the rental while she provides the existing equity as her contribution; or B) your mom lending you the rehab cash out of her personal funds while also seller financing the house to you. 

How to Track Regulatory ChangesStaying up-to-date might seem daunting, but the right strategies and resources make it manageable.Key Resources:Local Government Websites: These often publish updates to zoning, rental, and housing codes.Real Estate Associations: Organizations like the National Association of Realtors (NAR) or local landlord associations offer regular updates and seminars.Newsletters and Blogs: Subscribe to reputable legal or real estate blogs for insights into upcoming changes.Professional Advisors: Build relationships with real estate attorneys and property management professionals who can provide guidance tailored to your market.Pro Tip: Set up Google Alerts for terms like “rental law changes” or “landlord regulations” in your area to receive real-time updates.3.

If you want them to leave, provide them legal notice to leave.

The idea is to use this property as an office space, giving me the separation I need from home while providing a place for my assistant to work where I can be more hands-on with them.The business would pay rent for the property, which would cover its expenses.

This is a story from my past that provides a perfect example as to why investing in tax liens at auction is so dangerous for any but the most experienced and knowledgable investors20 years ago I purchased a SFR as a long term rental investment that sat on a double lot.  

Just transferring your property to your LLC doesn't really provide much shielding. 

There are areas outside the Tahoe basin with a short drive that can provide for solid short term or long term income streams and still pull in the Tahoe goers.

Your equity can provide the funds to make those improvements happen, increasing your home’s value and making it more enjoyable to live in too.Getting a Business GoingIf you’ve been dreaming about starting your own business, your equity could be the kickstart you need.