Newbie Taking Over A Property

[Victor Ramos]

Newbie here. This is a long one. Hello BP community. It's amazing how the universe aligns when you make the decision to focus your energy. I was finally bitten by the REI bug last year after reading an article on building wealth which lead to a book, to another book, conversations with owners, webinars, seminars, mentors and eventually BP. I spent the year soaking up as much as I could. And now, when I finally fell ready to go, before I could even make my first phone call on a potential property this situation shows up. I've searched through the forums and haven't seen this yet, so forgive me if it's already posted.

Multifamily. Owner-occupied. 2 units. Owner has approached me asking for help. Older gentleman, like family. House no longer has a mortgage on it, (value probably 215K), but he has not been administering his multi as a business and so his numbers are not good at all. Rent for second unit is ridiculously low. Like 1992 low. So he still pays for fixes and touch ups out of his own pocket, not from saved up rental income (since there isn't much). From what I can see the next door rental income pretty much pays for utilities on his side. He would like to get out of the property/landlording headache and has offered to let me take over completely however I choose (including transfer title/ownership, Subject To, etc). He has 100% trust in what I would choose to do to help. He is hoping the tenants don't have to be kicked out as the family has been with him for for many years. As a believer in karma, I want to make sure I do right by him. Part of my concern and the reason I would take over the property legally (not just as a property manager) has to do with his kids. I don't want to get into a power struggle if all of a sudden Child A decides she wants to show up to make decisions because she heard the house is being renovated, etc. I would also hate to put effort into research, taking out a small loan, etc. only to get blindsided. This would also become my first property which I have been hoping would be a multi so I admit it is exciting and can be profitable if I do this right.  

Here's what I'm thinking but only after legal documentation has been signed for whichever way gives me decision-making power and/or the property).

What I'm thinking- Property gets signed over and I go for a small bank loan. 30k or so. I offer him a reasonable amount of cash (which he can pocket and move in with one of his kids) and I use the rest to renovate side A (his side) to then make it a rental property at market rate. I also speak with Side B and inform them that rental fee will be going up, not to market, but a reasonable percentage  (to honor his request). I know they won't disagree. It's long overdue. I use new rental income to set aside funds as it should have been done and very slowly make sure to keep up with Side B's repair needs as well. SIde B gradually gets to market rate (always informing tenants appropriately). I would also set aside a percentage of monthly income to be sent to my new partner so he smiles when he thinks of his decision to get me involved  Granted, if the property is vacant for X amount of months that may not always be the case, but ideal. 

My questions: 

1) What would be the best way for me to take over the property? And should I? If I do it as a partnership or as property manager I feel it leaves me open to outside influencers changing his mind or creating problems for every decision.

2) Any foreseeable challenges that I need to take into account or that should make me walk away from this? The property is in decent condition. Needs some TLC. I plan to upgrade the usuals (cabinets, countertops, paint, etc,). 

Thank you all in advance for your comments.