Any guidance on this would be appreciated.Sebastian  It's scenario dependent.

It may be market dependent, but an expense that I haven’t had an issue with passing on to my tenants.

Keep in mind that you would still be on the hook for any depreciation recapture.If you do not qualify for the 2 years, you may be entitled to a partial exclusion depending upon the reason you moved. 

@Ty Zaczkowski A lot of this will depend on your local landlord-tenant laws.That said, I'd make my offer contingent on the current tenants not being renewed at their current rents. 

It will probably be only a partial exchange and A LLC will need to also buy a second property depending on the amounts.  

There are also occupancy requirements which may apply depending on what year the original mortgage was closed in.

Depending on the individual lender they may do an online valuation or even go off the tax assessed value from the town.

Her gain would be the difference between the proceeds (what you pay her) and her basis (what she paid for her ownership interest, plus her share of any significant improvements, less her share of depreciation).Depending on your mother's taxable income, her capital gains rate might be 0%. 

That depends on your personal situation.

The answer to whether you should flip it or rent it out somewhat depends on that answer, and also: Does the property have any value-adding opportunity you might not have considered?