If you negotiate too hard then you run the risk of losing the property to another investor or else the wholesaler choosing to work with easier buyers.You should also realize that for every one $15K assignment deal that a wholesaler does, there are maybe 100 leads he got calls on that didn't pan out, 20 properties he looked at where the sellers were asking too much, 5 property deals that he got under contract that had title issues, a few properties he made a $1-2K commission on, etc.  

This is a bad plan.About 90 days after your Dad writes the quite-claim deed on the house the BANK will come knocking on the door and say that their loan now has no collateral and that it needs to be paid off.The entity that is on the records at the bank will receive the 1098 giving the interest credit, because that will be the SS#/TIN on file with the bank.You have a few options to discuss with your experts: (I am assuming the property is a rental), and you don;t really say what your goal is (cash for the siblings?

If you see the opportunity and the numbers pan out.

I lived in Newport and tried buying a few properties that never panned out.

What do you pan to do with this building, once you have completed the rehab?

Even though it sounds as if it's not going to pan out, this was a great read and I appreciate all of you who contributed!

Neither panned out, and I consistently saw subpar results.

@James Ihssen Yes I was born and raised there haha, this opportunity did not pan out.

If that pans out it would be on the high side for my taste. 

My career and real estate started as a loan originator and senior mortgage banker at Pan American Mortgage.