@John T.Looks like your father's position is that of a private lender or passive investor, as opposed to a partner.Even though he is your father, you really should define economic rules between the two of you. 

It wouldn't have positive cash flow until year 4. 

Once on the site you're going to look at population growth (positive or negative), unemployment rate, home price and some other things.

The problem with gap funding is that the HML is in 1st position and they are paid first.

I am trying to stay positive but wanted to share my experience to this point on how a renovation project can spiral out of control quickly especially when you are dealing with a seriously run down property.  

Plus, these would still generate positive cashflow at their current listing prices.I wanted to get some opinions on turnkey properties, any other pros or cons.  

I have two questions I need help with.First question - Each one shows a positive monthly cash flow on their respective reports.

If you arent happy with the outcome make a move out plan that puts you in the best position for re-renting.

I work in a companion position to commercial real estate appraisers and as such have had opportunity myself to conduct title searches - one of the houses I mentioned earlier was also an estate property that had been flooded while the relatives sorted the will. 

I do have a system in place that meets a decent amount of requirements in order to bring positive cash flow.