Since moving into another fixer-upper isn’t ideal right now, consider leveraging your $40K for a low-money-down investment, like house hacking a small multifamily or using creative financing (seller financing, subject-to, or partnerships) to avoid tying up all your capital.

.✔ Maintenance & Repairs – PMs coordinate repairs with vetted vendors, avoiding late-night emergencies.✔ Time & Stress Savings – If you don’t want to handle calls, disputes, or turnovers, a PM is worth it.2.

.✔ Avoid Surprises – Owners expect clarity on additional charges.

Understand the local permitting requirements, keep eyes on your property to avoid squatters, and make sure you have a great vacant insurance policy while you're renovating.

It seems unlikely that he is avoiding you since he has been so consistent.

If the repairs are manageable and you’re getting at least a 10-15% discount, it can be a great deal—but avoid properties with major structural failure or uncooperative sellers.

I want to avoid the hassle of moving the property to LLC later.

I heard that if you move the personal mortgages to an LLC they could get called and we would want to avoid that3.

Give them a couple of options, they already know the unit got foreclosed, most people move to avoid the hassle. 

However, if your father inherits and later transfers the home, it should qualify for a step-up in basis to fair market value, reducing future tax liability.If the goal is to tap into equity, having the trust take out a HELOC may be a better option, avoiding California Prop 19 reassessment, which could raise property taxes significantly.