I would consult your CPA, if the house is gifted (while they are alive) to someone else then the recipient no longer receives the step up in basis.

Every now and then a trust fund recipient that gets good monthly income, but has no money for down payment and sometimes bad credit....so they end up renting forever.   

They are 50% of the end recipients, we should be able to get them resources and help you as a property investor at the same time. 

If she is served you well, she deserves to be paid for that service.Your question demonstrates one of the problems with gifts: the recipient starts to expect them rather than appreciate them.

@Alex DuarteI have heard that section 8 recipients in our area are given a specific amount and are not allowed to deviate from the amount they are given, or they will be denied benefits.

And I've not only be the recipient of it, I've been offering it as well.

Communicate to your recipient! 

These conditions or obligations include without limitation the requirement that the recipient attend a promotional activity or visit a real estate site.

@Gary Clisele - Almost every housing office operates on a waiting list of recipient holders.  

Otherwise, not needed.These basically all go toward proving documented income BTW.Child support recipient - need award letter of amount and recent proof of payment - just because there is an award does not mean the ex (or other parent) is paying.