Purchasing vs Being Gifted Family Property

[Tyler Spry]

Good morning, BP!  My wife's grandmother has an out-of-state rental property that she has considered selling.  It is a small condo valued at around $75k and has not been updated in over 20 years because she has a satisfied 90+ year old tenant that has been living there most of that time.  The rent has never been increased to my knowledge and she's on a month-to-month lease through a PM, so I'm sure that's why her tenant is so happy!   She has considered selling it to avoid the needed updates and simplify her financial situation now that she is in her late 80s.  

We have expressed interest in buying it from her, but we're considering the best options for the actual sell/purchase for both parties.  One other thing to keep in mind is that my wife will inherit 50% of her grandmother's estate, including this condo if it's not sold.  The other beneficiary is not interested in owning the rental, so we would like to take care of this while her grandmother is still living to avoid complications when settling her estate.

We have a few options: 1) Receive Gift of property and reduce property value from my wife's inheritance in the future 2) Seller finance (but unsure about carrying the note after her death) 3) BRRRR the property... but potentially delay the rehab so we're not kicking out a 90+ yr old tenant

What thoughts or recommendations do you have?  We're trying to analyze the pros/cons of our options, while also keeping it clean and simple for her.   Also, if she were to gift the property how does that influence our basis?  What documentation is needed?  And what would the "purchase price" be?

Thanks for your insight!