Simply because the design doesn't promote death benefit, it promotes cash value growth.

If it's commercial property, active churches support bakeries, cafes, restaurants and florists/gift shops.

As already mentioned, unless the Seller is direct family, gifting equity doesn't really work. 

I believe that the design of the property wouldn’t be a problem, however I would like some ideas on how to make this lot buildable in the eyes of the zoning department.

Before I bought it I was buying real estate giving myself and my daughter something to do, my lily girl (Alice kate) was disabled and a single father it gave us something to look forward to every day rehabbing apartments, I started doing some research on turning a small complex into something for her and design it for her wheelchair in case something would ever happen to me, she would have her own place ,in my research I seen assisted living facilities and thought thats what she needs something with nurses. well I found this 4000sqft building and it was an ALF I made the owner an offer and bought it!

But I suspect EPA didn't design a special rule for tax lien and foreclosure investors, who are limited in the due diligence they can legally perform.

There is a similar home about 15min closer to amenities doing 61K, at 79% occupancy and $211 a night but with no outdoor amenities or interior design. 

She’d like to gift to us somehow- is it better to sell and then gift the proceeds to invest in real estate or put the house in our name first - then we sell?  

This is often viewed as a "gift" so lenders place limits on the amount that can be "gifted" as well as the manner that these funds can be transferred to you. 

Here's an overview: TRADE AREA - 3 Mile Radius• 12 traditional facilities• 864,595 net rentable sq ft• 41,175 sq ft climate-controlled• 823,420 sq ft non-climate-controlled• 21.2 sq ft per capita overall• 1.0 sq ft per capita climate-controlled• 20.2 sq ft per capita non-climate- controlled• No boat and RV specialty facilities (although, all the facilities in the area have a portion of space designated for this and are usually maxed out)DEMOGRAPHICS - 3 Mile Radius• 40,786 population• 2.0% one-year population growth• 6.3% three-year population growth• 12,869 households• 37% renters• 26% multi-family• $44,627 median HH income• $123,150 median house value ($267,836 county)YELLOW LIGHTPros:• Climate control likelyundersupplied• Population growth is great• Good number of renters goodfor turnover and raising prices• Opportunity for boat and RVstorageCons:• Market may at equilibrium oroversupplied with additionaldevelopment• 2 facilities built in 2018 may stillbe in lease-up (yellow dots)• Low median house value andhousehold income - (This seems incorrect.