If the seller is still on the property after you close (you negotiated delayed possession), I wouldn't be opposed to doing exterior work (roof, landscaping, concrete, etc.), but I wouldn't do any interior work.

You also have a competitive advantage in this area as opposed to where you are doing, since you know it better.

Don't have to be on the deed even to declare it your homestead.It may be splitting hairs, and I may have been unclear in my initial post, but I believe homestead laws are designed in part to protect non-title holding spouses, so if the new wife moves into her husband's house he cannot sell or mortgage without the wife's consent nor can it be forced to be sold to pay involuntary creditors (as opposed to voluntary creditors such as mtg/DOT lenders). 

My sister and I are not opposed to some sort of buy in as well, as it would likely help my father clear up some debts, and would just be nice to help him realize some sort of lump sum gain, in addition to what would likely be a share of monthly rental income.We are looking at setting up a trust to accomplish all of this, but are just at the beginning of this journey. 

I would suggest they understand various strategies/methods to invest in real estate and then let that drive their next steps as opposed to the dollar amount they have to invest.

I know the question is mainly focused on what sorts of special protections you will need as a landlord with a lease as opposed to a longer-term AirBnB booking, so let me answer that first. 

And yeah I am not opposed to the 80% ltv, just figured get the most I can possible to utilize it as best possible with cash reserves left over.

Ask if they wouldn’t be opposed to receiving an offer?

Just an opposing view from someone who did not have such a spectacular experience-- I was definitely on a long-term drip campaign with the Left Main sales team. 

They’ll probe the motivation of the opposing side and NEVER belief any answer.