Buying property below market and tax implications

[Phil Acnodnem]

Hello Bigger Pockets Community,

I  am looking to buy a property in California below market value from a family friend. While the house needs repairs, it still will be a great deal for me. My family friend is looking to offload the house for about half of its current market value to me, however, we can’t seem to figure out the best way to go about doing this. Here are some ideas that I thought of but I am sure there is a better way to go about doing this which is why I am reaching out to you all on BiggerPockets for your expertise. $150k agreement purchase price and market level is in the high $200k’s. Please correct me if I am using the wrong terminology. I am a newbie. Also, please assume that I have the cash to purchase the property outright. Here are a few questions that I have. Please tell me what you have done from your past experience to safely make this happen. Any kind of help and or advice will be greatly appreciated. 

1) Should I pay in $150k in cash or finance the purchase and put down the 20% to avoid the PMI? Any pro's and con's to either way?
2) Will property tax assessment be based on the $150k for the first year since it is based on the purchase value? My understanding is the assessment will go up 2% each year in California. It seems like this may be good as the annual property tax bill will be less since it was purchased for less than the current market value. 
3) Will paying the house in cash or financing the $150k purchase price affect the property tax assessment basis? 
4) What is the best way to transfer the home title/deed or whatever it’s called?
5) Are their any implications, including tax implications, that you foresee that could happen due to this transaction?

Looking forward to reading your responses and thank you for your advice. 

-Phil