It has been a very bad and costly experience. 

Additionally, S-Corp compliance costs (payroll, tax filings) typically range from $1K–$3K annually.

-Transfer the property into an LLC – This may allow me to take ownership while potentially avoiding property tax reassessment, however this sounds like an involved process-Establish a living trust for my aunt and mother – The trust would specify that I inherit the property upon their passing and provide step up in cost basis but i'm worried that the living trust can be modified to have me removed (who knows what can happen) - My mother is somewhat volatile.I would like to live in the property and my mother will live in her second property with her husband. 

@Jonathan SniderFannie and Freddie do have LLPA's and the lower the down payment, the higher the cost.

Good suggestions above.I would research the labor cost of a total resanding and recoating. 

Sounds like you need to have a relationship with a couple of good contractors, 40k for vinyl siding sounds high, what was the material cost.  

I’m just really surprised that the tenant is not taking the option to break the lease break with a $ number offered (1 month rent plus reasonable amount for parts of house he wasn’t able to use) that is within a couple thousand dollars of what he wanted anyway.  

But me, i will be penalized with the guests relocation costs, according to booking.

So the only money out of pocket is any closing costs that don't get worked into a new loan.

Costs and Timeline: The process of splitting and developing lots can take time (1.5 years) and may involve significant costs for permits, construction, and other development fees.If you want to learn more about how SB-9 can work for situations like this, check out our website "CityStructure" for more info and helpful resources.