Partner with a friend to protect both interests, create an Operating Agreement, and focus on saving and preparing for the down payment and reserves.

And if so how and what kind of agreement do we need ? 

I recently had my tenants extend their lease agreement but we've had to adjust whom is renting and the responsibilities.

It also is helpful to have a California LLC in case you ever sell that property and move into another state so that you do not need to form a new LLC altogether with new operating agreement, just re-register in the new state as a new foreign LLC.

However, you need to really investigate to confirm that the property and tenants are performing as expected.Your offer to purchase should include a requirement that the Seller provide all documentation and agree to sign an estoppel certificate (also called an estoppel form or agreement).

Fairly straightforward, just ask the contractors what will make their job easier and keep them on schedule...removing old pipes, opening walls etc.If you haven't put the house under agreement yet I would bring a detailed and itemized list of repairs needed, maybe even with estimates, to the negotiation with the homeowner.

It was a creative financing cornacopia and it helped the seller move out of town within 4 days of signing the agreement.

From an advisory standpoint, it can be used in some less conventional situations such as for executive compensation and buy-sell agreements for example.  

My father is not interested in keeping the properties in his name and simply having us manage them, but is open to the concept of us owner financing them from him with a long term, friendly agreement. 

Review their management agreement.