Wade,Without much more information I cannot tell you exactly; You can calculate exactly how much you will be able to deduct based upon the link I provided below, the IRS publication 523 Pages 33-35 will allow you to calculate your basis, exclusion and gain, You will actually be reporting the transaction via the Form 4684.

It would likely not trigger any actual tax due, but it would likely reduce your parents lifetime gift exclusion. 

That may seem like semantics, since the two items appear thesame but legally speaking a SFR is fee simple ownership, and a detached condo is common ownership with your own exclusive right to the unit.Generally (not always) condo and TH products will be in a MFR zone, not SFR.

It's being re-marketed to other investors in your exclusive real estate group that everyone paid thousands to be apart of and thinks they are getting these great off market deals. 

That is basically what I do, I work with NWA we are a wholesaling brokerage that works exclusively with investors.

This isn't correct, the gain attributable to the primary residence isn't taxable under the 121 exclusion.

We have a large footprint in both of those areas and work almost exclusively with OOS Investors. 

Your seller really shouldn't have any issues with signing an exclusive right-to-sell from what we can tell form your post. 

We found that out in the early days and I usually tell people if you find someone that can be right over, keep calling . . if you find one booked, that is often the one you want.We have a few that we use almost exclusively and now the quality they provide. 

Transferring your homestead to an LLC will likely cause you to lose your capital gains exclusion which can be very, very costly on a house that is paid for.