If your walls are chipped, scratched, or full of nail holes and screws, then it won't look that attractive and tenants will assume you don't care if the walls are chipped, scratched, or full of holes.

I already had a bunch of nails. 

Tack onto this, legal fees, preservation, taxes paid, etc and you'll likely be over 600K total judgement.   

Don't buy or transfer ownership before he passes to preserve the step-up basis eventually when you inherit.

You nailed it with the financing issue. 

Just saw this....although that may not be illegal in some states it is certainly un-ethical IMHO Yeah...but on a positive note cslb sting just nailed 13 trunk slammers in El Dorado county:)

@Greg Dickerson hit the nail on the head with respect to the fund of funds.To add to this, what I suggest is that you approach this issue from the soft side, which means building and maintaining strong relationships with your investors because, at the end of the day, they are your investors.

I think Chris nailed it perfectly - you have to take your DD to another level and also be in a position, both financially and contractually, to take control of the situation if the borrower defaults.

Quote from @Travis Biziorek: Visit them.If you don't feel safe, it's D Class.If it feels a bit sketchy but you don't feel in real danger, it's C Class.If it feels like a place you could see yourself living, it's B Class.If it feels like a place you could see yourself feeling the need to keep up with the Jones' it's A Class.Hahaha @Travis Biziorek nailed it, and I agree.

Quote from @Todd Anderson:Hi Todd, thanks for your reply--you nailed it!