@David Wilson you should come tot he charity event below, great info about how we did it and an opportunity  for us to meet...WE, REInvestorProfessor/RE360, are holding training fund raiser this (March 9th @5:30) Wednesday at my office/warehouse in conjunction with all the major Pittsburgh region real-estate groups, PREIA, ACRE, Westmorland REIA, etc....

Of course you still need to keep in mind that you are running a business and not a charity.  

We started with the closing costs built in, such as realtor fees, but in the end we removed them under the assumption that there would be more value in the future and it was ultimately to the remaining partner's benefit if/when he finally sells (Or, he may die and pass the property to heirs, or leave to charity, or ... 

ResourcesROBS: http://www.irs.gov/Retirement-Plans/Employee-Plans-Compliance-Unit-%28EPCU%29-Completed-Projects-Project-with-Summary-Reports-%E2%80%93-Rollovers-as-Business-Start-Ups-%28ROBS%29UBIT: http://www.irs.gov/Charities-&-Non-Profits/Unrelated-Business-Income-Tax

Based on your profile - you are married and your standard deduction for 2016 is $12,600.considering you have a home - you are entitled to claim the real estate taxes as an itemized deduction.Texas residents are screwed because they are limited in taking any state taxes as an itemized deduction(because TX doesn't have a state tax)(unless you worked in another state and paid state taxes to another state).However, what a lot of people don't know is that they are able to claim a deduction for sales tax(which is calculated by the IRS based on your income, zip code that you live in and the amount of exemptions you claim).Others are well known, charity, medical expenses, employee expenses, mortgage interest(doesn't seem like you have this since you own it clear).I like your strategy to acquire a HELOC as a downpayment on any investment you plan to acquire.You can find great agents, management companies, contractors by first networking with some local BP members and ask who they use.

Did you know Warren Buffet's will to donate the majority of wealth to charity, in some countries, it is ILLEGAL to do that?

Thank you @Charity Skore. 

At certain seminars I have personally watched $250k raised in 24 hours for charity.

Not useless you pretend to a charity and want to go to jail for falsifying documents.  

There are government programs and charities to help people in his situation.