Had my father not insisted on having his tenants pay their own gas bill, he would have been creamed.

I guess that makes sense and I would actually use cash on hand to fix up the place (I am estimating materials at 25k) Labor costs I will be eating since I along with my father in law would be handling the fixes.

Not a silly question, my in laws families had settled there from Europe but they asked that same question shortly after they were married and my father in law was going to start his business.

@Ryan Slicer,Your step father is technically not a disqualified person, however I suggest you have experienced professional review all details of this transaction to make sure that it is truly arms length. 

My father inherited the property from my grandmother and said he really doesn't want anything to do with it.

I am working overseas and thinking about buying a house for my father to live in.

I did learn a little from my brother and my father about real estate and my father was into mostly commercial buying and selling when I graduated from college (with honors) in Business that emphasized real estate. 

My father did that with his father, and I've always thought it would be neat to have that experience with one/some of my kids.

I’m in central Texas and I need to know all the paperwork and steps I need to take to protect me and the property owner who is my father.

I was raised around people who are small minded and believed in living pay check to paycheck no father figure no mother no one to teach me how to save and use my finances.