My goal is to achieve $4,000/month in passive income from TK properties, using leverage and covering the 20% down payment.

Any office / technology feesIn exchange you'll get X% commission.

It has helped me to plan, budget, and eliminate personal debt (although I still leverage my investment properties).http://www.daveramsey.com

The following is just MY opinion and should be taken as just that.What I would do (again, just MY opinion) is put some leverage on the property (mortgage) and put that money into another investment (something safer, maybe triple net lease property) and have that income go to your dad.

It's actually pretty risky and I'm a "no money down" guy so I'm all for maximum leverage when it makes sense.

Once I get my capital built up to $1M+, then I will probably start going after some large multi-units and may start leveraging with more credit. 

It seems to me, personal finance-wise, that once you have six figures to invest you're much better off figuring out how to better leverage that money than you are plodding away at your day job...even if it's a lucrative one.  

But we don't like too much leverage, so probably won't go for cash out.. the house was 3/1 with 1400 sqft

That's the beauty of real estate: Leverage

Leverage your experience as much as possible.