One way may be agreeing on a fair market price for the house and then using a "gift" from your father to cover the downpayment.

Give the tenant a gift card to local grocery store to resupply their food.   

I like to give a gift certificate to a local coffee shop.

@Evan Lewis  The easiest and cheapest way to buy property for the first time is owner occupy it. 

Or, maybe it's time for me to stretch a bit and look for deals in southern/western regions...or Costa Rica :)@Joe Rodriguez: Option #2 = I would hold for at least 5 yearsSo, I guess it's sort of coming down to the ease of finding deals these days....and comparing taking the easiest deal available in Ipswich (town on N.

most of my closings are mail away so I control my pens. but when i go to the title company to sign my loan docs and deeds on properties i am selling.. they have box's upon box's of new pens.. so they carefully hand me a brand new pen in a box.. and it then becomes a parting gift.. 

For using an on 3&4 unit MF, you cannot use a gift as cash reserves.

@Jai ReddySure but I think the point is - out some sort of a value on whether it ultimately is a sale or gift or goes into your estate.

@Charles ScottI think the seller is telling you that he doesn’t want to sell the house but you have been hounding him so much that he felt this was the easiest way to get out.It’s like when I get contacted to sell my house.

Getting a private money loan, Seller financing, maybe a military loan or someone gifting you the property are about the only options.