[greglepore]

Not sure why inheritance would be better. Either way you for tax purposes your basis is value at time of transfer-this is a concept primarily relating to appreciated property. Most states don't transfer tax parent/child or estate transfers. Estate tax likely not an issue, other than state estate tax.
One wrinkle will be that a transfer might make the existing loan due on transfer, either way. So, unless bank allows you to assume you'll have to arrange financing.