Additionally, your brother would inherit your cost basis for the gifted portion, potentially leading to higher capital gains taxes if he sells later.

At the time, his offer was low, and I had potential plans for that space, so I turned him down.

She has stayed in my property for free for four months, and if she keeps appealing everytime when she's given a 7 days moving out order, she could potentially never pay rent or move out.

@Tove Fox - Residential Real Estate InvestingPros:Lower Entry Costs: Easier to get started with less capital required.High Demand: People always need homes, making demand relatively stable.Easier Financing: Mortgages are generally easier to secure with favorable terms.Simplicity: Easier to understand and manage, especially for beginners.Flexibility: You can use it as a personal residence or rent it out.Cons:Tenant Turnover: More frequent turnover leads to vacancy and more management.Lower Cash Flow: Income potential can be modest compared to commercial properties.Emotional Buyers: Residential prices can be influenced by emotions, leading to price volatility.Maintenance Burden: Landlords often deal with repairs and maintenance, which can be time-consuming.Commercial Real Estate InvestingPros:Higher Income Potential: Stronger cash flow and higher returns are common.Long-Term Leases: Tenants often sign longer leases (3-10 years), reducing vacancy risk.Professional Tenants: Business tenants tend to take better care of the property.Valuation Based on Income: Prices are based on the income the property generates, not market emotions.Shared Costs: Tenants often cover property expenses like taxes, insurance, and maintenance (via triple-net leases).Cons:High Entry Costs: Requires more capital or partnerships to get started.Complex Management: More expertise is needed; you may need a professional property manager.Economic Sensitivity: Commercial properties are more sensitive to economic conditions.Challenging Financing: Securing financing can be harder, with stricter terms and higher interest rates.Zoning and Legalities: More complex regulations compared to residential properties.Key Differences:Risk: Residential tends to be lower risk, while commercial offers higher rewards but with greater risk.Management: Residential is easier for DIY investors, while commercial properties usually require a team.Scalability: Commercial properties are easier to scale, offering more potential for significant cash flow increases.

And before getting too far along in the process it might be worth doing a title search to check on any potential liens on the property.

Debt increases risk.

We have three potential options.The first option is for me to completely owner-finance his purchase.

But, I'm fairly risk averse, and do live in a heavily tenant leaning area as far as regulations and court judgements. 

Just say no.I would almost never do this trade unless all my downside, including potential unknowns, were completely compensated for. 

network network. be different. see what out there. dont be afraid to take risk and be patient