My first thought was have the down payment gifted from either her or another family member and add the down payment cost to the loan and pay whoever back immediately.

I remember my dad used to say 'the most money you'll ever make will be on your 1st home' and I remember thinking how I might be able to maximize that when looking for our 4-plex.Now to be honest i'm trying to look towards guys like yourself and learn from them, I know you are quite the investment minded person with a real gift in the RE business.

I'd pay that in cash through family gifts.

I am also in the habit of giving discounts or small gifts because I want to let me tenants know that I care about them, I respect them, and I want them to have a positive experience with me

Can someone please help me to understand the lending process.Can investors use a gift from a family member for a down payment?

What an awesome gift from your grandmother!

I've thought about doing a gift card drawing at the end of each month for people who respond but that might be kind of cheap.

You getting your EM back is a gift. 

My lender had suggested I receive a gift for the down payment.

However, I can say that the amount she can gift you is limited to 14k per year.