Because that ownership interest for Party B increased with the addition of the in-law unit that was added, would that really impact the ownership/use test and holding period to where they now wouldn't be able to sell that property without incurring capital gains unless they remained there for an additional 2 years?

There are 2 months remaining on her short term lease of this vacation property

He wants to sell this property yet wants 50K down then will finance remaining at 0% Comps on the home are currently 166K and it needs about 20K of work in rehab. 

Landlord remains responsible for major systems (heating, A/C, roof) and replacement of appliances if one is not worth repairing.

It sounds like your goal is to get the financing needed to cover a down payment and then let the bank fund the remaining 75%.

If we could pick and choose what reviews remained on our site they would be of very little use.The advise being offered here is solid. 

Then make sure the lease states that any remaining deposit goes back to her at the end of the lease and if he moves out, she is responsible for the rent.

Recommend re-evaluated by a licensed plumber.”Home details- 1954 with only kitchen and laundry remaining from original structure.

Even though it's family, we'd have an agreement written up showing that all rental income from there goes to pay the mortgage first, then the line of credit with what remains.  4) Since it's a Heloc, if we have vacancy or maintenance issues, we could also pull additional funds from it, as we plan on getting a 200K line but only accessing 180k of it for this plan. 

The one I'm moving out of is conservatively valued at $152k and I have $64k remaining on the loan.