Selling at FMV avoids the gift tax but provides your child with a higher tax basis, reducing their future capital gains liability.A better strategy for selling below FMV is to sell the house at FMV on an installment note, then forgive interest and principal annually up to the gift tax exclusion amount.

Contrary to most business lending, the REI industry has a lot of "non-bank" lenders that provide attractive loans that can lower your cost of capital and improve your profit/cash flow. 

However I’m not ignorant to the fact that there is a lot out there just collecting money and not providing much. 

Could you please provide insights on these?

The idea is to use this property as an office space, giving me the separation I need from home while providing a place for my assistant to work where I can be more hands-on with them.The business would pay rent for the property, which would cover its expenses.

There have been a few things that I feel like they could clean up, but it seems like they work hard at updating it to provide a lot of value. 

If you did a cost segregation study on the property in the past, you may have to recapture the depreciation taken in the past.capital gain tax rates are 0, 15 or 20%There is also a potential 3.8% Net Investment Income Tax.Also, don't forget state income taxes depending on what state the property is located or your state of residency.Best of luck!

Quote from @Iris Wu: @Steve Mitrano, Hi, Steve, do you mind providing an update on what you end of doing in this case?

The people are friendly, the business environment is welcoming, and my real estate investments have provided me with financial freedom.

It's not illegal provided you're dislosing it to all parties and not trying to actively hid it.