They may prefer a slightly different sequence of events...Have you set purchase price and terms?

The skill set required is not that hard to learn.

What I mean by leveraging the capital gain tax is if I set up an LLC and have my properties under the LLC, would I be able to save some tax while it’d be a business profit gain?

I am a newbie in real estate Investing trying to set up llc.

Would you pay off the note or just keep paying that as its already set up with a 4.5% interest rate?

It’s your place with your rules . it’s a serious matter, because it sets the ground work on where you stand and how you fIrmly plan to manage the property

My lease states The only person(s) living in the Leased Premises is/are: (the husband & wife)  A.Any change in the occupancy will require written consent of the Landlord and may be subject to an adjustment in the amount of rent. 

You’d set the purchase price at the $550k you think it’s worth then set the gift at whatever amount will leave your Mom with enough to pay off her existing loan.

Will the closing attorney be able to set this up or is this something done by a RMLO at closing?

That is a given in your market.No problem in speculating, provided real estate market does not adjust down but expecting positive cash flow on this property is a joke.The opportunity value of your equity (10%) alone is costing you 8K per month in lost income.