I consider appreciation as a 'gift from the RE gods' for trying to be a good landlord.

For damages, we charge for them as they occur or as we discover them, for what it costs to repair/replace.We charge a $200 non-refundable move-in fee at the start of tenancy that covers our administrative costs, including changing the locks, preparing the paperwork, preparing the move-in packet, preparing the move-in gifts.

Or, if he chooses to, he can gift it or sell it to family at a discounted price.2) Make a minor renovation ($40-50k) to make it very comfortable (central AC, new bathroom, etc.) and hold onto the asset and maybe down the road gift it or sell it to one of his children.The house is his best asset and my attitude has always been #1.  

All contracts, options, or other devices not based upon a substantial consideration, or that are otherwise employed to permit an unlicensed person to sell, lease, or let real estate, the beneficial title to which has not, in good faith, passed to such party for a substantial consideration, are hereby declared void and ineffective in all cases, suits, or proceedings had or taken under this chapter; however, this section shall not apply to irrevocable gifts, to unconditional contracts to purchase, or to options based upon a substantial consideration actually paid and not subject to any agreements to return or right of return reserved.

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Once again my house is worth about $195k, and I owe $118k and owe a "gift" of $15k (parents loaned it to me for the house) back when I sell the property. 

ETC.When it comes to friends and family, if you can't afford to make it a gift you can't afford to get involved in it at all.

The full down-payment can also be a gift from valid sources:RelativeEmployer or labor unionClose friend with a clearly defined and documented interest in the borrowerChurch or charitable organizationGovernmental or public entity down payment assistance program providing home ownership assistance to low- and moderate-income families, or first time home buyers.

An example would be a real estate business that largely supports a non-profit, or a business that uses real estate investing for a philanthropic purpose.I'm working on a business plan to set up something similar, and want to know what's out there that I can mirror.  

Then I would gift the income of the LLC to my parents.