You should insist the property be delivered vacant (and have that in the contract), and have someone do a walk through the day of closing to be sure -- and then have them change the locks immediately.

Banks will insist on the property being listing with a licensed Realtor and put up on the MLS for a fair market value, in order to qualify for a short sale.  

Any institution willing to lend money on the property will insist on you having cash reserves. 

There were witnesses to not only the initial verbal agreement of not wanting anything in return, but also a couple years later when she INSISTED they not get her off the mortgage since it wasn't damaging her credit.

If you insist on borrowing from your family, get everything in writing.

If the appraiser insists on a site visit, you may have to switch to a FHA 203K loan to include the cost of the repairs on top of the loan.  

The HER manager has four specialists for different areas who are always available, and they insist on reviewing files before submitting contracts or going to closing. 

Insist on letting them hold any earnest money.  

Investing in your local market - those who advocate this insist that there are deals to be had in any market.

Interestingly lenders don't seem to insist either.