My mother agreed to gift me some money to cover the difference but apparently gifts cannot be applied towards investment propertiesIs this normal?

I've been told my whole life I have the gift of being able to connect with people so now is the time to see if what I've been told is true

He gifts me half of the difference between the all-in costs and the appraised value.

Think carefully about whether it is wise to invest with a romantic partner to whom you are not married.

Also, if he has to buy it in his name first, how will I be able to pay for half of the costs, since you cannot gift money for an investment purchase?

@Nicole HeasleyI am a little bit wary since this transaction is done between family member.1) If you guys decide to go the seller financing route; you guys should pick an appropriate interest rate and not 0%.Your father should then pick up interest income from the seller-financing note.If the note calls for 0% interest - the IRS can calculate "imputed interest" onto your dad's income.A workaround this is for your father to gift you $14,000(annual gift exclusion for 2017) and use that to pay off the seller financing and you pay him back after all is said and done.It should also be noted that if he sells you the property at a loss - he can't take the loss on his return.

This way they can gradually adjust to the new rent and likely stay in the unit.Finally a way to entice your tenants to stay is to give them a nice little "new owner" gift and the rent increase together.

They cannot be gifted!

Sometimes the best gift a friend can offer is a different way of looking at the same scene. 

It would be considered a "gift" which plenty of Hard Money Lenders allow.