However, if their basis is much higher than FMV you may want to consider having them gift it to you in order to keep their same basis.

I can see that you have a special gift when it comes to landlording!

I never charge an app fee but I guess I could start saying "no app fee for a limited time" :)I have also done tings like a gas card when gas prices were high - a gift cert for a Thanksgiving meal (just a gift card to a grocery store) - I even got a cheap price on some 32" HDTVs (less then 1/3 the monthly rent) and I gave those away as a move-in special.I haven't had a drop off in vacancies as of late - but in the past when I had trouble renting a home I used those tie-in's.Look for something relevant - back to school is going on now so how about a "back to school" package (again just a gift card)

good point, gift cards are a great idea.

Since it was a gift, I'm concern about their RE potential.

I backed out and lost the $450 inspection and gave my realtor $100 gift card. 

However, depending on the investor’s situation, a different structure may be beneficial as a result of estate or gift tax issues. 

You can also offer some type of gift card to a home store or something.

My lender told me I would need the standard 25% down payment and 6 months reserve PITI for the property I am purchasing 2 months reserve for my 1st property and the money can not be gifted.

This is a gift from a family member that does not 'think' they will need it, but we want to be conservative with it if they do.