My question is how do I avoid triggering the due on sale clause in the mortgage when the seller transfers the deed to my name?

@Blake Johnson If investors want to divide real estate holdings without triggering a large tax bill, the biggest challenge is that transferring assets out of a corporation is typically treated as a taxable sale at fair market value.

Buying at the mortgage balance (~$150K) positions is under the fair market value and can trigger gift tax rules.

Have been talking about getting into real estate investing for the last 2-3 years and finally pulled the trigger on a 3 unit house hack in Soulard that will be closing later this month and will be self-managing the property.I'm trying to network a bit with other investors, build a solid team of contractors / handymen, and set my systems up in way to scale, but also so my tenants have a good experience.

After 20+ years in real estate partnerships, here's what actually puts you on the IRS radar (and what doesn't):
REAL Red Flags That Matter:
The Partner Complaint Trigger
Disgruntled partner files Form 8082K-1 dispu...

How much below market value would a sale have to be for it to trigger a gift tax and if so what is the rate on that? 

We are about 2 years away from pulling the trigger on something.

Will review more before pulling the trigger.  

Last month, I pulled the trigger on getting my first real estate property ever and decided to go with a 4 bed, 2 bath new construction to limit all the variables involved since I am still in college.

I have looked at getting involved in real estate for years but never pulled the trigger for one reason or another.