When you're the one bringing the information to the client that they might be able to sell their property and indefinitely defer paying the tax - you are the hero.I'll reach out with some of the information we give to realtors in our classes.

Also, go to the build your team tab to find advisors that can help you with your tax and financial planning.  

I would pay an option fee of $50,000 up front. 

Don't forget about your long-term goals when making investment decisions, taking into account things like diversification, cash flow goals, tax considerations, and potential growth of your portfolio.

Does the fact that she doesn't pay rent pose any tax implications?

@Rollin BuffingtonYou will want to speak to an accountant since, if the current owner of the property and the owners of the LLC are different, taxes might be owed when the property is transferred/sold to the LLC

I don't know if it's easy to switch as the LLC is newly formed, without any tax/income historyAny other way around re-financing?

I love it when strangers on the internet tell someone that it is a bad idea to take $220k in tax free cash.

@Abigail Rodriguez There's a handful of Philadelphia based "Gurus" who collect  mentorship fees from new investors and feed off the exact rhetoric you just wrote.

It sounds like you have a paying tenant where you occasionally make a little extra on with a late fee.