@John T.Looks like your father's position is that of a private lender or passive investor, as opposed to a partner.Even though he is your father, you really should define economic rules between the two of you. 

Sometimes, it can just be your luck that defines a project.In that price range and area, I would definitely suggest good pictures, staging, and focus on curb appeal.

Hey Y'all (I'm not really from Texas, but I feel its my duty as a transplant to try to fit in as much as I can),I am an attorney representing mortgage lenders in all aspects of mortgage default: foreclosure, bankruptcy, tax sale, loss mit, etc., in my day job.   

City zoning defines the parcel's use, so my inclination is to stick to that.I suspect that @Chet Hileman can throw in some added information here from a financing/mortgage viewpoint, so hopefully he sees this and adds some clarity.

In addition to the practical aspects of following a properties profitability, if a property sells, all expenses are tied to the saleable unit and the basis is quickly and accurately available.

Areas with above average school districts are another plus:  This will be the absolute hardest aspect to find in 3-4 units. 

My personal belief is that "It is not the software that defines the process, but the process that should define the software" In other words, each and every one of us have a unique business, with unique processes that can utilize software to reduce workload, provide a better customer experience and automate tasks.

The lawyers always forget to mention that little aspect.

Think of it in line of a defined business strategy.

Nothing was signed and there are no legal remedies involved this early in the process, so no harm done should things not work out.It's not fool-proof but it's less risky than most other aspects of REI