With a value of 95K and rents at only $800 there is next to no cash flow which is not uncommon for SFHs.Combining negligible appreciation with very low cash flow makes this a undesirable income investment property.Let your father sell it and do as he sees fit with the money.

For example they say you individually were negligent. 

The answer is he showed up for work everyday and he personally managed the place, and his negligence was the cause.

Their liability coverage will respond to property damage/bodily injury claims where the tenant is found negligent.

They were negligent in dealing with this.If for some reason the tenant cannot come up with any money, serve them a notice to vacate and then follow through with eviction if necessary.

Negligent Resident shall pay the cost to exterminate Resident’s apartment and adjoining apartments affected by migrating pest such as roaches, fleas, and bedbugs along with damages. 

My advice to anyone looking to use the loan ... if the Contractor is not performing or negligent... fire them.

If it was somewhere that they knew it was leaking and chose not to notify you until after they received the bill, I would consider that negligence on their part. 

Buy in either: - Established, affluent areas: Pacific Heights, Presidio, Cow Hollow, Sea Cliff OR- Tier 2 areas that might become more affluent: Mission Bay, Potrero, Dogpatch, MAYBE "Outer Sunset" (although yes - it's probably in a lower tier than the others) 2) Are we likely to make money if we invest in a cosmetic renovation of an older place or is the cost of labor and materials in SF likely to diminish our potential profits to a negligible amount. 

Note if you use the equity approach, you will also have to take a negligible few grand cash out to show a derived benefit for the refi.