Do you mean that you are looking to pull cash out and give to your father so you both have an equal investment?

Also, my understanding (as it stands now) is that you must "substantially improve" the property by investing an amount over 30 months equal to your un-adjusted basis in the property at the beginning of a 30 month period, and that 30 month period can be over any point of your overall hold period.This provides the opportunity for significant planning with regard to investor risk and uncertainty.Also, this is subject to change and simply an interpretation - I could be wrong as there are quite a few moving parts and many more that we are all seeking clarification on. 

Your assets are light for a deal this size to qualify.How debt works and ratio's involved will likely depend on what going in cap rate the income throws off with purchase price.There are hundreds of items to analyze when looking over a retail property and takes a lot of time and due diligence.The items listed for roof, parking lot, etc. can equal in to the six figures in costs so very substantial to repair or replace.

If next year, I decide to 1031 exchange this rental property into either one or two investment properties (equal or more in value) would the amount used to pay off the HELOC be subject to capital gains tax? 

Vacancy at $200 a month (not sure how to calculate so I figure if its vacant for 2 months a year that would equal $2400 loss on rent divided by 12 months?)

All things equal, I use Airbnb as a tool to find roommates for my house because the returns are higher than renting the whole house to someone. ($4100 vs 2500).

They see you coming from a mile away.Now, with that said not all agents are created equal.

@Kevin Keith BeckBeing a contractor, I think you are taking it personally thinking those of us who are not in favor of this strategy are anti-contractor which at least in my case is not trueI am against partnering with any trade or investor who is not a equal or near equal financial contributor to the project.

The real experienced investor may not want to put much down but want an equal or better than 50 pct equity.

Split the equity 45-55 with the option for you to buy equal equity over time.