I was also nominated for Rookie of the Year by the Salt Lake Board of Realtors for selling more houses my first year than anyone else in Utah.

You can let the judgment sit on their credit but there are time limit laws in most states in years where it will expire.These types of tenants are professional deadbeats.They usually owe child support among other things.They change jobs frequently so that you can't get a garnishment.Some even work at cash jobs under the table with no reporting so none of their money can be attached to.What you can do is file yourself for a judgment and forget about it.Maybe they pay you someday or there are collection companies who will pay you a nominal amount for the judgment upfront or they will partner with you and split what they collect.This way you don't have any more time into it but might collect something.

Only problem is, as I mentioned, that you really haven't suffered any damages other than some nominal costs, maybe, so the result in court may be that you hand back over the deed and they give you your money back, but that may not be the best end result for you.

Also, for transfers for "nominal consideration" dollar amounts, the transfer tax is not based on the nominal (i.e. small) consideration amount, but instead it will be based on an imputed value determined by the product of the tax assessed value and the "leveling factor" that is in effect for the county at the time of the transaction; to add to this, on some transactions the PA Department of Revenue audits the transfer taxes by using that imputed value, and seeing whether the actual taxes paid are close to that - and if not, they will send a letter to the parties involved requesting an explanation or payment of more tax (I personally have seen such a letter addressed to a seller a few years back).

You pay a nominal yearly fee to be a landlord.If you want to rehab you need a permit and the village Inspectors will check in on the rehab.

I nominate this thread for the most absurd tenant complaint Ive read in a long time. 

They may not want to do the deal when they find out.If you want to offer a nominal amount the judgment holders might release their lien interests on the property for XX proceeds but reserve the right to pursue the remaining balance at a later date.This is different from releasing and settling to consider the judgment SATISFIED and paid in full.

What could be done is for your dad to loan the money to you, at a nominal rate, and then gift payments under the limits to stay away from a tax liability.

Or would it make more sense to nominate the newly created LLC the trustee, keep all the net operating income, so it could qualify for a loan faster, rather than dispersing any of it to the beneficiaries.    

This will be a nominal cost.