The lender I am trying to go through is telling me I will need 25 percent down, 6 months reserves on both properties and can not receive a gift of any amount for the second property.

Would asking them to send a $1 Amazon Gift card be ok?

I need advice on the best way to get the equity without getting killed in taxes.I have thought getting a loan for the remaining amount that I owe them, but with me not owning it for two years, I'd have to pay capital gains tax when I sell it.The other option is for my parents to sell it and then give me the equity, but they would have to pay a gift tax.  

How much do you have to send them to get this "gift"?

Either try to generate her leads or write her a check directly or get a her an Visa/AmEx gift card for a few hundred bucks.  

What if he "gifted" the money to me and I took the loan out myself?

The only problem you may run into is having enough funds for down payment/closing costs, so a co-borrower may be required and/or you can obtain gift funds.Another possible solution would be to go FHA route and find a fourplex.

I had to get a signed affidavit from them saying this was a "gift" and not a loan that was expected to be repaid.

Hey all - quick question that I haven't been able to find the answer to...Can I use gift money (from parents, friends, family, etc.) when completing an ALL-CASH home purchase?

I'd check with your Dad's CPA ....he may be able to gift some portions of the land before the sale.