You should look at any limitations on gift taxes though, and she may actually want to structure it around any of this.

Also make sure your tax basis is reduced as part of the sale since your land is being reduced. 

if you can manage to live in it and rehab it over time, then if you live there 2 of the last 5 years prior to selling it the gains are tax free up to a certain amount. 

It is very hard to find a lender that will help include this income prior to it being on a tax return for 2 years.

An accountant would help here, as you can make gifts to family members every year to a certain amount tax-free.Finally, you could simply sign over the dead to your son, if you trust him to pay you back over time.

The seller wants to sell it for $50k but has requested to put it down on paper for $5k, so he can pay less tax; the remaining $45k would just be given under the table. 

If you lived in the property for 2/5 prior years you could sell without capital gains.

Check for floodzone / prior flood? 

Purchased for kids future/college fund (maybe relevant maybe not) Mortgage rate is 4.4% currently paying $1149 a month (including taxes/Insurance)Currently rents for $1550 (room for upping rent to $1600+)In the 2 years Ive had it, Ive added a roof(insurance claim),new windows, new bathroom, plumbing.

Even the house is fully paid off, the 1% property tax + 1% maintenance offsets 2% annual gain.