Just got fired from my day job in the middle of a rehab >.<

[Philip Johnson]

Ok, so I am currently in the process of rehabbing a home that was purchased with cash.  I have enough funds to finish the rehab.  But, I JUST GOT FIRED from my day job! So, this means I will likely not qualify for a loan (my DTI is quite high) to refinance to get my cash out.  I need the money in the home to do my next rehab and pay back an investor, and I do not want to sell the house, it is an amazing location.  My solution is this: 

1. Transfer the title of the home to a family member, or someone willing to take the property that I have 100% unwavering trust it. 

2. Family member then refinances the home, and gets a nice fat check

3. Family member then gives the nice big check to me, BUT THE PROPERTY AND MORTGAGE remains in their name.

4. I will receive the cash flow on the property from my family member and manage the house 

Questions: 

What's in it for the person willing to do this?

Is there a tax penalty that he may get for receiving the home "for free?" 

Do you know what would happen to my $50,000 improvements in terms of depreciation claims? Can said family member claim the improvement depreciation? 

Is there some smarter way to do this? What if I sold the house to said family member instead? What about co-signing? Ultimately, I want to get the house back in my name and the loan in my name so I can claim the tax benefits. Is there a more creative way to do this? 

Thanks!