Investment Property or 2nd Home

[Jim Brandt]

i have a friend who owns a condo outright. She's on a $500 a month fixed income. property taxes are $3600 per year and HOA's are $300 per month. She's offered to deed me the house valued at $280,000 if i make the HOA payments, pay the property taxes, and allow her to live there rent free. she's 68 years old. Will this be considered an investment property? What are my tax benefits? If it isn't considered an investment property in this scenario what do i need to do for it to be considered an investment and show the losses for my tax benefit?