So here's the story:The owner was a contractor who built 3 duplexes on his father in laws property around 1993, his father in law passed away and left them to his daughter/ current property owners wife.

Your equity is reducing your possible returns not increasing your cash flow.If your father has no use for additional income he could leave it where it is and not care if it is impacted in a market shift or he could pull it out and invest in a income fund or a REIT. 

@Bob Prisco Me and my father did over here in Northern California.

The down payment and rehab budget would come out of my home equity line of credit and I would get a new mortgage on the rest.My father will do all the rehab and manage the property, physically.

Here's my overall plan:I graduate in 2019 and immediately start working and building creditI live with my parents (they've agreed to let me) until I have a decent income from real estate.I have to go to college but I'm going community and my father has agreed to pay for my student fees so there's no concern thereHere's where it starts getting good...My longtime friend (since kindergarten) is VERY entrepreneurial and is also the son of a contractor and is planning on going into contract work.

We are putting the deal together with my Father who is a local contractor and will be organizing the build and private investors for financing the build. 

My wife's family lives there so after we move out and starting renting the house her father would be and excellent hand in helping with the property.

The property has been in the family for a long time and was given to the son after the father died.

His cousin's father passed away and they lived out of state.

Private money is an option too, but my father is having his HELOC renewal so that is not viable now.