As we all know people start pulling faces when we try to pass on our wisdom so I thought I would buy him some books as an 18th birthday gift to try and educate him.I have ordered Your Money or Your Life & Millionaire Next Door already for him. 

If you don't disclose both loans to both lenders, you are committing fraud.That said, assuming that you disclose everything and are able to qualify for both loans, with Conventional financing for an investment property, you cannot get a gift (unlike a primary residence where you can). 

Im one of the few that does not do closing gifts generally.

With FHA qualification you do not need to be a first-time home buyer, as long as the property you are looking to get the loan for, or to assume, is going to be your primary residence and the buyer can qualify.As for the down payment portion, there are several options including secondary financing or a HELOC, as well as a gift from a family member up to a certain amount.  

Otherwise they probably just thought they were a gift, or something left behind and did with them as they pleased.

We plan on handing each tenant an introductory new ownership letter.Has anyone ever given a small gift with the intro letter?

Another option: give away the spare copy as a Christmas gift to someone who might appreciate it.

He would come around on my birthday or on christmas and give us gifts.

Vacations, dinners, nice clothes, gifts for the wife, sports for the kids, nights out with the boys etc....and for this reason, i would rather buy mortgage  points as a way to reduce my payment rather than make a larger down payment for my home.  

Do you simply take gifts of 10,000 so it wont be heavily taxed?