We made an LLC, but obviously can’t get financing through an LLC, so going through my name(with plan to quit claim), and my lender as part of the funds verification process is asking for my dad to submit a “gift” verification form.

Typically you can Not borrow a portion of the down payment on conventional and you can’t have a “gift” on non owner occupied.

In my case, any money I borrow would be put towards rehab, or structured as a gift to put towards the down payment only.

You would be handing her a gift of never having a rent increase as long as she (hopefully) takes care of the place?

@Justin Petrides Yikes, that $1 sale may have actually been a gift, not a sale.

I appreciate the communities feedback.You might want to check with a CPA, I would be a little worried about making sure any transaction that is done doesn't create a gift tax liability.  

However it can come from gift funds, and there are ways to get creative with that too.It's also possible that DPA is the best option for you. 

We also do some volunteer philanthropic work (my wife is on a volunteer board for Bloodworks NW and I'm on several advisory boards and help run our HOA) and love supporting the local Kenmore/Bothell breweries and restaurants. :-)I've been keenly interested in getting into real estate investing for the last few years and have finally gotten into the game.

Then maybe offer some sort of bonus it the house has a contract for sale in the first 30 days, like a gift card to Walmart or a local restaurant  for $250 given when the house closes escrow.Stick and carrot:)

I’ve been doing some reading on “Gift Funds” as part of a down payment but it seems that only immediate family members are allowable sources.