How much below market value would a sale have to be for it to trigger a gift tax and if so what is the rate on that? 

But SFH are already seeing renewals at 2%-4% and release rates up at least 5% YoY...that number is even higher on some luxury ($3k+/m rent) homes as those are harder to find.The rest is entirely speculative.

Also, there is a need in the marketplace for a co-living PM company that doesn't charge too high of rate. 

I think that a Short Sale would be the best option to get some discounts/concessions from the lender - however you would need to have a knowledgable Short Sale agent on the seller side.

Vs her current super-chill life, get's special discounts all over the place for being "too poor" and all the while can work cash jobs when wants extra, keeps her bank account low, plays the game to get here "free ride". 

I would find a loan officer that does both conventional and FHA renovation loans to compare which has better rates and terms for your situation.

Being that rates are up it's another way to offer exatly what you mentioned; the chance to own for a couple hundred bucks more than renting.Thoughts?

@Chinku Chinku the rich get rich by making their money work for them.They borrow at one rate, to invest in something that returns a higher rate - they profit on the difference.Only you can evaluate your risk tolerence though.

And also that rates are just going to continue to be an issue, so it's likely something to plan for in rent rates and/or overall investment costs. 

The price points do make it hard to cash flow even with the lower interest rate subject tos.