Best way to sell or gift a property to a family member

[Shelby Bybee]

My father has a 2BR 1BA condo in Kansas City, MO. He lives in Dallas and it has become cumbersome for him to manage long distance.  The condo is in impeccable condition and is in a great location. The approximate Fair Market Value is approximately $165,000. I would like to buy the condo and keep it as a rental. We are trying to figure out the most beneficial way to navigate this transaction.  A friend suggested that, if my father were to sell me the property well below market price, we would reap the greatest tax benefit because he would minimize his capital gains taxes now and later taxes as he passes on his wealth to his loved ones.  Please share your ideas, pros and cons. -Shelby in Houston