Generally though, I break it down into the "five pillars" of protecting your assets.The first pillar is avoiding unnecessary and risky activities (don't drink and drive, insurance generally won’t cover your poor decisions) and take good care of your investments(maintain your property, etc) - these simple steps will help you prevent lawsuits before they even occur.

If we start to take on SFRs with roof with end of life in next 1-3 years we start to creep into the problem that occur from no economies of scale like you get in larger apartment complexes2) systems - need to have checklists at a very detailed level or it would be very easy to say 'forget this' this is too much workI am not going to try to say that 50 SFRs is able to achieve economies of scale with the right systems and process as compared to taking down a 50 unit building.  

There are a variety of reasons for cracking to occur.

Now I am an extreme beginner here but a 9K NOI seems like an error occurred in the results.

It happened by accident.

Estimated repair $2,000-5,000 and the inspector said it could go higher depending on how much degradation has occurred in the 15 years since the gas heaters were installed. 

Thank youSo leveraging up with 1031 until targeted cash flow occurs?

If you think you will go FHA, Conventional, 203k, etc. and then Quit Claim the property, to a LLC, or a Land Trust you run the risk of the lender discovering a Title Transfer occurred and activating the "Acceleration Clause" or "Due on Sale Clause" that requires the loan to be paid in full, within 'x' number of days.

Your operating agreement in the LLC should show, among other things, 1)how profits will be allocated, 2) How much of the actual partnership each partner owns and 3) how  initial funding of the partnership will occur.

BE CAREFUL:  a change in the name can be a taxable event (treated just like a sale) AND invoke the Due On Sale clause.If the purchase has yet to close, then have dad put you on the title in the first place.Guess dad has his own reasons for not wanting to be on title, but I'll not ask.After COE with your name already on title, THEN do the Quitclaim and neither of the above exposures should occure.