If they hold onto them and they appreciate more, they'd only pay CG taxes on the gain accrued after they inherited them.

I'm not a CPA nor can I offer any advice here, but out of curiosity how would the IRS know what type of loan you have on your mortgage, and why would they care?

I am curiosity about this one!

Out of curiosity do you know anything about the seller?

Your dad has a spreadsheet with a line item for every time he funds the loan or gets a payment or accrues interest.

I tried out Betterment and Wealthfront a while back and didn't like the lack of control...I don't want to be in emerging markets with the situation in China what it is, but I felt "forced" into it using those services...I'd prefer to buy my own commission-free ETFs and rebalance my portfolio periodically...but that's just me, I'm a bit more hands-on and have the time most days to constantly monitor my portfolio...that's also why I just contribute to 401K just enough to maximize the employer match...though I have always maxed out my Roth contribution...But just out of curiosity, which do you like better, Betterment or Wealthfront?  

You might try to contact law firm that handles the tax sales for the county that has the property to verify   the full price owed including possible interest accruing on struck off amount .

I'd ask them to pony up all the fees you accrued on your way to closing (inspections, gas spent driving etc) and ask them to write you a check for reimbursement in return for not pursuing legal action.

Out of curiosity, why do you feel like you need a team?

Revenues Monthly (Year 1)Rental Income   1,200 (14,400)Vacancy/Loss Rate  5.0% (5.0%)Vacancy/Loss Value  (60) (720)-------------------------------------------Gross Income   1,140 (13,680)------------------------------------------Expenses Monthly (Year 1)Property Taxes Annual  1,158 (1,158)Insurance Annual   755 (755)Maintenance & Repairs Annual   684 (684)Utilities Annual   0 (0)Advertising Annual    150 (150)Administrative Annual   600 (600)Variable Cost PM (% Income)   0% (0)Fixed Cost PM Annual    0 (0)Other 1 Annual      100 (100)Other 2 Monthly     0 (0)--------------------------------------------Total Expenses    3,447 -------------------------------------------Expenses as % of Gross Income    28.94%------------------------------------------Net Operating Income (NOI)   10,233 ------------------------------------------Cash FlowNOI (Cash Available)    853 (10,233)Mortgage      479 (5,752)Total Cash Flow   373 (4,481)Cash ROI    16.60%Equity Accrued   1,583Total Return    6,064 Total ROI   22.46%Cash Flow / Mortgage Ratio   178%Loan to Value (LTV) 80%Rent to Value (RTV) 0.95%Capitalization Rate 8.5%I can't for the life of me figure out how to link my spreadsheets I've got on my computer to these posts.