Gift of equity?

[Colton Hill]

I have a family member who has found themselves deep in financial trouble and they are wanting to sell their home to me at a massively discounted rate to pay off their debtors. The catch? They want to pay me rent to continue living in the home. The cashflow from the monthly rent wouldn't be significant, but the equity from this transaction would be. I understand this not a clean-cut deal, so I would appreciate some help in weighing the pros against the cons.