For the lurkers laughing at this conversation, the correct answer is that you can reduce your taxes but you can't completely eliminate them unless you use a trust or similar vehicle to gift the property to your heirs.

They had my sister sign a gift of equity to us even though we had been buying the home from her.

Concepts I'm looking into are a friendly loan, and/or gift of equity, that still might allow for additional re-financing. 

To supplement my down payment, I have secured $50k via gift and inheritance.

All good groups.Read BiggerPockets a lot, and get on the forums - huge help, especially when you're learning.The BP books by J Scott are great, as are the books from the 'Millionaire Real Estate...' series by Gary Keller - there's one of Flipping, Holding, Being a Real Estate Agent, and the main book.For mindset, 'Think and Grow Rich' by Napoleon Hill, Rich Dad Poor Dad, The Power of Positive Thinking, and The Traveler's Gift by Andy Andrews.  

:) And that Learn link at the top of the page is like a gift that keeps on giving -- every thing I click on is full of useful and interesting information.

Also, please do not get "gift funds" from a family member if you plan to repay that gift.

If he sells you and gifts you the money you might have tax on it.

If nothing else, offering a small reward like a gift card to their favorite restaurant (ask when they initially sign the lease) helps.

You may have an amazing gift from Uncle Sam.