How do I "buy" my parents' business?

[Kyle Cortez]

Without being too specific, here's the scenario for a friend:

A young college student wants to buy an investment property; it's a small apartment building with 11 units. Since it's over 4, a commercial loan is required. Guess who doesn't qualify for a commercial loan with limited business history? 

The result is that the LLC, which will own the property, ends up in the student's parent's name, along with the commercial loan since the student is ineligible (for at the time at least another 2+ years.)

When it comes time to refinance/sell/etc. how can the property belong to the student instead of the parent, without "rebuying" the property from the parent? Open to any all suggestions!  

[Brandon Hall]

@Kyle Cortez The parents can gift the property to the child. No taxes will be incurred as long as the property is less than the parents' remaining lifetime exclusion amount. 

Otherwise, it will be a taxable sale.

There is a third option: student manages the rental and is paid to manage the rental. The payments will be ordinary (self-employment) income which will give the student income history (good for loan quals). If student never takes title and parents pass away, student will received a stepped up basis in the property at the time of death meaning that the student can then liquidate without paying a cent in tax.