Deteriorated conditions (paint chips/lead dust) is the hazard trying to be avoided, again, as we interpret this new law. 

There's chipping paint on the foundation outside.

You have all your chips on the table and you can lose in this game, believe me, I've seen people in spots where it looked like they had a clear 50k in profit coming there way and then things go sideways and you hope to break even.

As I educate myself more and analyze more properties I notice I start to slowly chip away at some of it.

The Brrr principle seems to be hindered (at least that’s what I witnessed buying my first house where chipping paint was even an issue).any thoughts are appreciated

Or I might just leave the sink area alone other than changing the sink and the faucet, while fixing all of the chips and paint issues on the front face of what's already there.

The key features that make it more efficient that are hard to replicate else where is that the interest is simple interest similar to commercial loans (rate/365Xbalance daily), there’s a 20 day grace period before the prior period’s accrued interest is billed/added to your balance outstanding so you can keep chipping away at your daily principal balance with your deposits from days 1-19th each month before prior month’s interest is even billed (on the 20th/21st usually).The current CMT or constant maturity treasury index is less volatile than prime index that most heloc’s are based on (most bank commercial lines are based on 3-5 year FHLB + 225-275 BPS or 2.25-2.75% margin).

While I appreciate growing a business, as you note, the existing LPs likely don't care about how much you are out of pocket for marketing your next fund, they want to make sure their current deal stays afloat, and sometimes that means chipping in GP money into the deal, or having reserves to cover expenses when you need to fire a manager or regional team that isn't performing.You raise through Funds.  

However, the LLC will need to chip-in financially to help complete this renovation.My general question is what items should the LLC cover and which should my father cover for best tax benefits?  

Why buy the real estate equivalent of a penny stock when you can afford to buy blue chip aristocrat dividend stocks (Class A multifamily properties in good locations with actual strong fundamentals like population growth, a diverse and recession-resistant job market, limited supply and high demand, affordability, and consistent long-term appreciation)?