If you are just looking to buy to rent and then buy to hold and keep going you might want to have a relative gift the extra cash for you 20% down it will help you cash flow later in passive.

All that is key is that in order to defer all tax you must purchase at least as much as you sell and use all the proceeds from your sale in the purchase or purchases.Someone else may add funds - either through a loan to you, a gift to you, or buy buying a % interest in the new property.  

Other Options: Pay off all your debt, or have a family member "gift" you the money (CHECK IRS RULES HERE)Have a co-signer on the deal.JV with someonelease purchaseHard Money (ABSOLUTE LAST RESORT, they don't like lending on OO properties)Probably a couple more ideas around...Good Luck!

I know of a similar situation, where the property was bought by the Father of 2 adult women as a gift for them.It was a cash sale, and they used the house as an office (with no mods to it).Both girls had been long time riders, and through some paperwork their husbands owned no of it (if they divorced or otherwise).They made a few bucks, but were not getting rich...and loved all of the renters owned and leased horses.I point this out regarding prospects (cash buyers vs those who would borrow for this).Just my 2 cents.

You can purchase 2-4 units under Home Possible with 5% down payment (3% your own seasoned funds rest can be gift) as primary residence. 

That's $1,800 a year that you are losing and gifting to the tenant.

It is actually a 3% down program but some lenders are giving 2 of the 3% as a gift.  

Janatags: estate planning, san francisco, bay areaLuckily CA does not have an estate/inheritance tax but it does have a gift tax to beneficiaries that I've seen post death.

Most property is purchased all cash anyway, no underwriters dictating rules about gifted funds and sources of funds/income.Who do you know in Texas, what are the tings you can do now to begin building your network?  

Since it's a commercial property I'll need a higher down payment which I would receive as gifts from family members and friends.