You can use a conventional loan and have your dad gift you the equity in the property so that you dont come out of pocket with the 20% or you can use FHA to reduce your cash outlay and only need to come up with 3.5% if you occupy.Student loan calculations for lenders are actually pretty generous.

I read that my father would be able to give me a gift of equity to make up the difference and also account for the 20% down payment, thus avoiding pmi.

Is there a transfer or gift tax? 

All contracts, options, or other devices not based upon a substantial consideration, or that are otherwise employed to permit an unlicensed person to sell, lease, or let real estate, the beneficial title to which has not, in good faith, passed to such party for a substantial consideration, are hereby declared void and ineffective in all cases, suits, or proceedings had or taken under this chapter; however, this section shall not apply to irrevocable gifts, to unconditional contracts to purchase, or to options based upon a substantial consideration actually paid and not subject to any agreements to return or right of return reserved. 

What services would you like to see in your unit; new paint, carpet, washer dryer, cable, security, new doors, windows, out side lights, alarmLet them know you want to improve the apartmentsNegotiate with the tenants, agree on a rent increase to cover the up-gradesAs a bonus, agree not to increase their rent for another 2 yearsA gift of a fat turkeys for the holidaysAn end of year bonus for paying on timeA gift certificate for something they may like I consider a tenant a customer, take good care of them and you'll find you will get your rent as agreed.Remember "late charges" increases your net also.Be kind and understanding when tenants don't pay on time, listen to their excuses or problems, you may be able to help them.Tenants are just like us, we all have problems at times, a little leverage, understanding and kindness goes a long way.......they won't forget you.When we have tenants with financial problems I consul with them, we talk about how to earn extra money (that is usually what the problem is...lack of money).I suggest different ways they can earn money without a job; if your tenant is handy; painting, plumbing, roofing, fixing cars, teaching a course, bookkeeping.

Everything from limited amount of properties available, to brokers and agents not wanting to deal with FHA clients, to needing a "gift letter", etc.

@Justin BearceYou can’t borrow 100% and use an FHA loan.You can get a gift from a family member with the stipulation that you don’t have to pay it back and that it won’t cause financial harm to them.If your friend is going to lend you money the bank won’t go for that because you’ll be essentially 100%.Also.

I was gifted the house.it was paid in full, so it has no current mortgage. if I sold it right now, i can turn a $40,000 profit free and clear, because 40 is a low ask for it in all honesty, so the rehab cost would be my only expense.in response to 3, the $1320 figure includes payback on a HELOC, that I plan on using for the final project of repairing the siding. it also includes taxes for the year, CAPEX, vacancies and repairs.id recover my 70K rehab costs back from rent in 5 years. and then also would have about 120K in equity by then assuming the property doesn't appreciate or depreciate, thats a 50K profit within itself.should I be trying to make more than that?

I want to use that somehow to persuade her towards the seller financing option.I heard there is some kind of $10,000 gift limit that one can give their family members each year.

I need more of those types of clients :)So when you put parents on title, you are essentially "gifting" them an ownership stake.