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. 

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.

I have read Brandon's No and Low Money Down book, listened to his podcasts and he obviously has a gift for breaking down complex concepts into simple to understand layman's (sp?)

You will not owe any taxes. 2) There is no issue whatsoever on gifting you the money.

If you can show it as being a "gift" from family, that would be acceptable.

With friends, favors and small gifts (not money) of appreciation are better than giving money.