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.

We usually pay 30% of shelf price (with the odd gifted gallon here or there).

What if it was considered a 'gift' and we had the loan repayment on the side? 

This removes any hard feelings because it's a gift not a loan.When my brother in-law became disabled due to a medical condition we gave him one of our small rental houses free and clear. 

We intend to gift our share to them when we pass away.I understand the 1031 exchange and TIC is a common practice as far as IRS is concerned.

I'm not sure what you mean by "gift of equity" @Jeremiah Hatcher.

If you use private money there may be the option of a gift of equity for the down payment but most institutional and hard money lenders will not use a gift of equity.