Me and my elderly mother who intends to will me her share in the LLC when she passes on. 

I was going to say tell her to look for housing meant for the elderly and infirm since she is no longer capable of using a tub safely.

Their story was along the lines of: "He wielded a firearm to defend his elderly relative from an abusive uncle but never actually used it."

As for your question it should be drawn up by her attorney, especially if mom is elderly.

The house was an estate and the elderly inheritor did not want to move the personal property out of the house.

There are many issues dealing with the elderly, I suggest you see your attorney and their tax guy/gal. :) 

Most make minimum wage and are either divorced, widowed, elderly or post graduates just not wanting to move back in with mom and dad while looking for a job.

The banks are too busy charging elderly war widows and crippled orphans overdraft fees to worry about shoring up the real estate market by extending capital to investors.

Mostly quaint shops, medical and office buildings down "main street".Here's what I know now after a few days of phone calls and research....Only 8 units (the 9th one is gone -- fire, explosion, etc...)Price now $400K (better because one less unit, but still $50k per unit)Only one tenant is salvageable and I don't know the details of the rent yet (all the remaining tenants are being relocated by seller prior to possession -- this one lease is up in April)Property is owned by a non profit and is used for housing for people needing a little help (so no income to speak of)No expenses to speak of (at least for current owner because they are tax exempt and volunteers provide services for repairs when needed)Electric is not divided (don't know total yet but I would spend the money to separate and have tenants pay)Property was built in the 50's and remodeled in the 90s (I still haven't seen the inside of the units, but are housing mostly elderly couples that have been there for at least 10 years -- agent says I will be pleasantly surprised -- walking through on Tuesday with my general contractor friend)Advertised total square footage was pulled from tax records stating about 10,500 sq. ft for living space (so around 1300 per unit...

If the interest is transferred while your mil is alive the basis would be her basis when she bought the property.If you took advantage of the stepped up basis and sold the property immediately there could be the possibility of zero Federal capital gains tax.You may also want to consult an elder care attorney for advise on nursing home look backs, which I think changed from 3 years to 5 years, but I'm not sure.