New member from Texas

[Brennen Chapman]

Hello, my name is Brennen and I'm looking forward to learning from the information available in this community. I am 22, currently holding a blue collar job at a fortune 500 company here in Texas, while completing my business management degree online. I was referred to this site from the realestateinyourtwenties.com blog. I don't have any real estate/ investing experience, but I am learning as much as possible, I'm working my way down the "7 books to read first" mentioned in the above blog, and I hope to implement this information to be financially independent before I am 30, which is my long term goal. My current goals are saving for my wedding in July, remodeling my newly acquired house, and getting me and my future wife out of debt (student loans) as soon as possible.

I do have a question, the house I am currently living in I have been renting from my grandfather for nearly 3 years. After asking him what he would want for the house, he told me if I pay the attorney fees to transfer names on the title, I could have it. I guess my first question is what can I do, if anything, to avoid any tax penalties if I decide to sell or rent this house in the future? The current plan is to rent it, market here for this small of a house I believe is ~700-800 a month. The house is pretty small, ~950 sq feet, and last tax appraisal from a few years ago was just under $35,000. I plan on remodeling it, possibly raising the value to what I hope to be around 50,000. Thanks in advance for any information. I hope to receive, and then eventually add value to this community.