Purchase Parents Rental

[Daniel Robb]

Greetings, my first time on the site, and I’m excited to get to know you all and hopefully be able to contribute. 

I’m looking for advice on purchasing a rental property for my parents. They are not skilled at managing property, or taking care of property. The house is worth about 175,000, in its current condition. They paid 225,000 for it 20 years ago. When I look at it I see a house worth 300 to 350,000 after remodel.

  I’m curious if I should purchase it from them for 225,000, instead of 175, so that they can get the most amount of money without paying capital gains tax, and they could gift me the 50,000 difference back over the course of two years or something like that. 

Or are there other strategies for purchasing a rental from parents that I am completely missing. Any insight would be much appreciated.  

I’m not certain of what questions to ask, as this would be my first deal so I’m probably missing a lot of context.