Receiving a Gifted property

[Anthony Mendez]

My grandmother helped my mother purchase a home @12 yrs ago for $50K (it needed a substantial amount of work). Fast forward to present time and my mom has offered to sell the home to me for $100K (currently appraising @ $200K) in which she would repay my grandmother and pocket $50K. She was advised to have it gifted to me and in turn do a cash-out refi in order to unlock the equity in the property to pay everyone and also a little extra for repairs. It sounds like a good deal but I do not want to be in a bad light with any taxing entities.  I am also anxious to use the remaining funds as a means to invest in other real estate.