The original post leaves the door open for a challenge by the IRS, so the safe harbor of holding it for investment for two full years is the safer option.  

There are more options, but this is sufficient to answer your question. 

A knowledgeable attorney can advise here.Create a solid operating agreement: Since you own the condo with a friend, a clear operating agreement is essential to outline responsibilities, decision-making, and profit-sharing for the LLC.To save on costs:Look for real estate attorneys who specialize in investment properties and might offer package deals for the retitling, operating agreement, and filing the LLC.Shop around for title companies that can handle the transfer smoothly and provide competitive rates.Research DIY options for setting up the LLC if your situation is straightforward, though I’d still recommend a lawyer for the transfer process itself.Good luck with the process!

I've looked into mobile/manufactured homes as an option but with lot rent it seems like it may not be worth it.

Offer aid and housing options if you're able -- don't try to profit. 

They didn’t completely destroy the house, I did keep most of their security deposit and used it for the repairs, along with some of our own cash.

(Auctions and foreclosures can also provide great leads.)With $20K, hard money loans are a practical option, as they emphasize a property’s ARV over your financial history.

Here is a link that provides fantastic information on the turnkey investing option from BP. 

I have a STR in the Sullivan County and have been looking for a cleaner but the options seems to be limited in this area. 

There are so many options for LVP now, from lower priced to higher.