Considering the holidays and people spending more money on parties and gifts, I was wondering if this would make it too hard to sell the property/would drive the price down due to lack of activity?

This would be perfectly fine and something we recommend if a parent wants to 1031 into a house for a child - Make a lease, collect rent, declare income, and then gift back to the child if you really don't want to collect rent.It sounds like the way you've done it is a little fuzzier. 

But a gift is OK.

I like the idea of a gift card to a local market or a nice restaurant for a dinner out. 

If my tenant pays on time all year (only had 1 problem tenant) I reduce their December or January rent by $100 as a Christmas gift and goodwill. 

Even ignoring the 'theft' risks, you have gift tax return exposure (and use of lifetime exemption), transfer taxes, no basis step up involved with gifting the property back and forth, probate risks if the 'buddy' passes away and didn't update their will for the property. 

That puts you in a property now if you've got the down or can get a gift from family.Alternative is saving to buy the land for cash (very few land lenders) or ask to have a seller carry.

This will allow your wife to inherit the property without owing and gift tax.

It can't be considered a gift since that partner would need a vested stake in the property. 

Any payments on the balance remaining from the original loan must be included in the debt-to-income ratio calculation for the refinance transaction.Note: Funds received as gifts and used to purchase the property may not be reimbursed with proceeds of the new mortgage loan.The new loan amount can be no more than the actual documented amount of the borrower's initial investment in purchasing the property plus the financing of closing costs, prepaid fees, and points on the new mortgage loan (subject to the maximum LTV, CLTV, and HCLTV ratios for the cash-out transaction based on the current appraised value).All other cash-out refinance eligibility requirements are met.