My name is Tes and I'm looking for some advice or guidance on how to properly structure a gift of equity for two homes I'm purchasing directly from my parents.Here are a few details:- There are two properties -- one in Raleigh, NC and the other in Jacksonville, NC.- Both homes are currently owned by my parents and I'll be purchasing directly from them.- These will be investment properties, not primary residences, as I currently live in San Francisco, CA.- I've already started the pre-approval process with a credit union based in North Carolina, but I'd love some help understanding how to structure the gift of equity correctly for investment properties, what documentation may be required, and if there are any specific limitations or tax implications I should consider.- My goal is to close on both homes by the end of the year or early next year.If anyone has experience with gift of equity transactions for invest properties -- especially in North Carolina or involving out-of-state buyers -- or can recommend a loan officer, lender, or real estate attorney familiar with this setup, I'd really appreciate your insight.Thanks in advance!

Quote from @Adam Wachter: Quote from @Rohullah Sharifi: Short-term rental (STR) activities require active participation and proper documentation to substantiate your involvement.

Obviously the cash flow following an ADU conversion is much better, but I would only take that step if you are zoned properly and have the funds.I do rent 3 storage units online, and they have been doing great over the last 5 years.

Some areas define it as anything under 30 days; others under 90.Midterm rentals often bypass short-term rental restrictions — but you still need:-Proper lease agreements-Local registration (in some cases)-Business insuranceIf you’re operating in gray areas, tighten up your paperwork.Anyone’s city recently updated their MTR regulations?

And what would you say is the number one bottleneck in this growth - cash, your time, access to people who can take proper care of your assets, something else?

They blew up our loan with 2.5 weeks to go by not properly disclosing fees, the broker was hard to reach, didn't get info to us as he should have and at the end was going to charge additional fees for a return trip appraisal because of their own error in not disclosing the lender requirements for the appraisal. 

If the property managers have been properly building a financial reserve for CapEx and Emergencies, do those transfer over?

Be sure you underwrite the borrower and do all the proper disclosures otherwise the borrower can rescind and you could be forced to pay back all the principal and interest payments. 

Still up to me to properly utilize it and get the deals contracted.

Are you properly licensed to be a 3rd party manager in Tennessee?