She wants to give me the $150k for a house in my name but it looks like there would be a gift tax in that case.

No gift funds can be used on investment properties.

@David RoeWas it a gift?

They get the deposit, and a nice housewarming gift....

For those of us fortunate not only to have a roof over our own head, but also to be able to provide that to others, I think we have a responsibility to recognize that gift, and give back to society. 

Though it won't help a lot, if you have children you can gift part of that money to them.

Starting off on a good foot is CRITICAL.This is where you can out flank the big cookie cutter management companies.For your keeper tenants - consider a no nonsense letter within a gift basket.

I use both my Lowes 10 percent off coupons (purchased through ebay)  on both places and gift cards I purchase through Cardpool or Raise for 9 to 10 percent off their face value to pay for these.I purchase my rental homes with cash and I don't have mortgages with them so I'm at the point where I sometimes have to look for tax deductions like these appliances.Gail

Like everyone said this is a great Christmas gift and way to start off the year. 

After they pay up the taxes, you can evict them for trespassing and enjoy the gift they made to you.