Understanding and finding the niche that fits you and your personality is important, or you may end up being like the countless others that jump in, and realize they didn't factor enough expenses in, hemorrhage money from day 1, and sell cheap in 4 years just before marital relations dissolve.          

The rules are black and white as to the 2 of the last 5 years as your primary residence that you can have a gain of 250K or 500K tax free depending upon your marital status.

You will also need your grandfather to sign a letter signifying that it is a gift and you don't have to pay him back.Of course you could always season the money to avoid those problems. 

I suppose forming an LLC is one part of it, but there are other considerations as well (e.g. your marital status, insurance policies, 401ks, etc.).

Sounds to me more like a marital issue than a financial issue.

The attorney likely can't tell you if they actually represent the client outright, but if you reach out or have your attorney reach out to either or both of this couple's divorce attorneys and mention you might be able to propose a solution to their marital debt on the mortgage (assuming the mortgage is held by both husband and wife), you might be able to work out some sort of deal whereby you bring the loan current and assume the note - if permitted under the terms - until you're able to secure financing to pay off the entire balance (refi, investor/partner, etc.).Their attorney might also be able to offer creative suggesting if it means more money in his/her client's pockets to pay the legal fees or help finalize the divorce. 

@Warren Romig Im a real estate agent and can find his address, DOB, middle name, marital status, etc.

Skin color, kids, marital status.He will be caught somday.

That is a major business mistake on their part but it signifies they are worried about losing the account.  

Maybe the bank is discriminating based on marital status.... ;-) Ever think of that?