Or would the son have to own his half of the home for two years prior to selling in order to qualify for the exclusion?

At that time I will get the house cleaned up and list it on the market and when it sells I've agreed to get reimbursed my costs for reinstatement plus any other costs plus a fee for my efforts.

Selling and move on.  

I would suggest you do some soul searching before you make and decisions to sell.

Quote from @Keira Hamilton: Here are 5 lessons I learned from selling my laundromat last year that can help you as a prospective business buyer.Lesson 1️⃣ - Listing sites can be a legitimate way to buy and sell a business.I will often hear people say that they’re not even going on listing sites because “they only have bottom of the barrel listings,” but this has not been my personal experience.

For example, I hate to sell anything, but I am selling two properties to raise funds for a new primary that meets my goals.Study the market and really lock in what it will rent for.

I would sell and take your gains.

Should I be looking for selling all or a portion of the note? 

I am now working with a realtor and she is saying we could sell it around $380k.

We're open to all strategies, buying, selling, renting, etc.