You or your CPA will need to use Form 1040-X and provide explanations for the IRS as to why you are making these changes.

They will have have some rights ask if the current owner provided a Notice of Sale which would start the clock on eviction timing. 

The phila.gov website says this:InsuranceYou must provide a Certificate of Insurance that includes the minimum amount:General Liability Insurance: $1,000,000 per occurrence

You don't remove it from your credit report, you lender will just not count that debt against you once you provide 12 months of statements showing it is paid by the business.  

The name of the game is getting into the game, and then figuring it out.

If you ever need any specific resources for your projects like contractors, lenders, or an investor-friendly agent, there are plenty of professionals here who can provide you with those connections.

It's a long game.

I have considered creating my own Property Management LLC to do the work above and hiring my dad as an employee, however, I was told this would provide no benefit in terms of liability and it would just add costs and more taxes.I would appreciate your feedback.

No one thought of this as “wholesaling”, or thought of it as a stand alone business, or thought to provide seminars or mentorship’s on the process.  

A settlement statement was not provided or signed during the closing, and the fees disclosed had changed.