If you only give it as a gift, it will be considered a gift.

Most of us will go even higher...say 85%...but you have to get the property to cash flow at that level.

Before I retire I want cash real estate. 

Purchase price: $72,000 Cash invested: $107,600 Case Study: Cockroaches to Cash FlowProperty AcquisitionI found this property through MLS.

Jaron Walling said something that caught my attention, "search for and buy a bad roof, leverage it during the negotiation"....especially of the property has been sitting on the market longer than normal for the current market, a "bad roof" might be a gift from the real estate genie.My point is this: get good at estimating and fixing a bad roof (or any particular problem found with most houses that sit on the market longer) and you'll get comfortable buying/fixing properties that scare off other buyers. 

There are no tax deductions for such gifts, however you have a $15k per recipient annual gift limit that avoids the chore of filing a gift tax return.

and I gotta tell you it's really fun to get to see the impact of my legacy gifts while I'm still around to watch my children prosper.  

Purchase price: $72,000 Cash invested: $107,600Case Study: Cockroaches to Cash FlowProperty AcquisitionI found this property through MLS.

$400k equity is producing $1600/month cash flow for a return from the cash flow of 4.8%.  

They keep rent low, give gifts and homemade cookies for Christmas, make upgrades whenever the tenant requests,  accept all the late rent excuses, etc.The truth is, your tenant is not your friend.