because 1. you cannot get an FHA loan (or any conventional loan under 80% LTV) if you are not living in the unit for at least 1 year. 2. you can only get "gift funds" from your friend as a downpayment if its a primary.

@Fausto Carosella   you have a good piece of wood I can whittle you a gavel as a gift to the court, may be they'll go lighter on you  for filing wrongful liens and financing the sale of real estate outside of settlement, you know, like undisclosed costs of acquisition in connection with the sale that cause the settlement of accounting to be incorrect, an unreported basis for federal taxes and, oh, let me see, financing an option out of compliance with the SAFE Act (now incorporated in Dodd Frank)........hey, mind moving that spittoon away from your leg, I'm not a very good shot spit'n'!   

Might speak to your attorney or accountant, if his estate has not been settled, you can forgive the note, as a gift and avoid tax issues, if the amount quaifies under gifting matters.

You can receive a "gift" from a family member but not a friend. 

It was during this time I really found Jesus and realized I was given a gift of perspective from which others might learn from.  

If not, you can carry them forward until you sell.Or, you could treat all the income as income for you and treat the money that goes to your parents as a gift.

Brennen, if you receive the house as a gift, you are going to get hit for income taxes on the gift, you should talk with a accountant and or lawyer as to how to transfer this with minimum impact. also, depending if your grandfather has been treating this as rental income and depreciation, he may also have tax implications on a gift transfer.

Most likely these are departing "gifts".Since we have owned the building for two years, the natural question is "why didn't we take action sooner?"  

My son just graduated from college and as a graduation gift, my husband and I told him that we would buy a rental property and make him a partner in that deal, so now we have to finally take some action!

Bonus could be standard commission bonus, or offered as a gift card of their choice (so then they dont have to split the bonus with their brokerage).