If he gifts you the money their will be tax on it.

Sounds risky,Also, I assume unless ALL that "private money" is gifted (which it probably isn't)... that there's surely a higher interest rate to be paid on the borrowed funds for the down payment. 

Not 100% clear on the process for this, nor the tax implications in doing so (e.g. depreciation recovery, gift tax, etc.).4.

If your are not gifted in color matching (like an artist), then for a small amount of money hire the professional.

Would you rent your house out to a local 18 year old for two nights during the peak of high school prom and graduation season who may or may not book using a pre-paid visa gift card?  

Haha Primary is a gift that keeps on giving...taking, I mean :)

That will be considered a gift that you gave for free to your LLC.

They bring wine and other gifts and clean the apartment when they leave. 

All contracts, options, or other devices not based upon a substantial consideration, or that are otherwise employed to permit an unlicensed person to sell, lease, or let real estate, the beneficial title to which has not, in good faith, passed to such party for a substantial consideration, are hereby declared void and ineffective in all cases, suits, or proceedings had or taken under this chapter; however, this section shall not apply to irrevocable gifts, to unconditional contracts to purchase, or to options based upon a substantial consideration actually paid and not subject to any agreements to return or right of return reserved.History.

The 3% downpayment program also allows for a gift of downpayment.