You’ll sign a piece of paper at closing saying you plan to live there ], usually within 30-60 days.

To avoid reducing your lifetime exemption, you could gift equity incrementally, but this requires proper legal structuring (e.g., fractional ownership transfers).

Net Sale - This is the contract price, minus the closing costs and commissions.Net sale - adjust cost basis = net gainOnce you figure out what your net gain is then you can subtract state and federal taxes from that figure.

For a quick analysis, I get as close to the 1% price to rent ratio rule for cash flow in Indiana when I was doing my search and narrowing down properties.

They gave me decent terms on financing the rental and providing rehab funds but it did not make sense with me being so close to finished. 

Your client should consult a real estate attorney to draft an agreement with the ex and ensure there are no legal or tax issues, especially since this is an investment property.

How much of a credit do they offer at closing to cover the servicing fee?

As far as investing in the short term I feel investing close to home (50 mile radius) is the best option because you have a superior advantage by knowing your market.

It was probably close to zero per month.

If the property is close enough, you can also forego the property management and handle it yourself in the short term.