Are you qualified to do so right now - have the contracts, inspection criteria set, screening, payment collection in place? 

We’ve only foreclosed on a few properties, all without issue, so I’m uncertain what qualifies as 'airtight,' Jonathan.

.- That management company has vetted possible tenants through their professional screening process and have selected the most qualified tenant for the property.- The management company offers a hands-off approach including coordinating and managing repairs, getting the property rent ready after a move out and placing a tenant from a pool of applicants that may be waiting for a property to be ready.

My assumption is that people who qualify probably have other options, like PPMs with groups they know, syndicators they know, private funds and other vehicles that may be more lucrative.

They do it across the board so all their units have to pay the higher deposit.

Another possibility is a cash-out refinance on your dad’s house if it qualifies, which would tie the loan directly to that property.

You pre-qualify them by asking questions about their situation and the property.

Really great investment loan program if you can qualify. 

If there is a large amount of equity, one party may have to buy out the other - if they cant afford it/cant qualify, then the property is sold.I deal with this frequently with mortgages. 

You may find this a viable option with rates where they are, especially if your rental income continues to cover the mortgage.Home Equity Line of Credit (HELOC): If your property qualifies, you could use a HELOC to access the equity without disturbing the current mortgage.