I am not talking about being friends or giving tenants gifts.

I spoke with an agent who mentioned that they'd heard of investors transferring the ownership into an LLC and issuing a small amount of stock and gifting it to the tenant, such that they are legally part owners, has anyone seen this done successfully?

But like I said it's highly unlikely the tenant would pay out of pocket and then just gift the system to you when they leave.

If you want to walk out with maximum possible cash-1) You parents should sell the house. 2) After they sell it, they can just gift you the money that you guys agreed upon.

Thanks in advance~We bought our first rental condo in full last year using our savings and a family gift (yes, fortunate us).

I spoke with an agent who mentioned that they'd heard of investors transferring the ownership into an LLC and issuing a small amount of stock and gifting it to the tenant, such that they are legally part owners, has anyone seen this done successfully?

As a former out of state investor (Properties gifted via my father's Estate), I can tell you that you are 100% on the money @Amy Hu.

The down payment was a gift from a family member and we purchased it using our LLC.

These laws vary state by state and are very intricate on how each is dealt.  

(Also do not fund a Roth this year, and ask a friend or relative for "gift money" now.)Buy a house for less than $275,000!