He's tired of keeping up with his rentals and selling them off to his kids. 

They were using one house to sell drugs. 

Make sure you get a "Release Fee" on each property; this is an amount that is to be paid to release a property as collateral in the event you need to sell, or if you have an insurance loss that insurance proceeds will be applied to the subject property and not to the whole loan keeping you stuck with an encumbered damaged property, remember they don't make construction loans as a second and the blanket loan won't subordinate (usually) to another lender, it could get messy, so have a release fee stated and understand how payments will be applied.A line of credit is not a blanket mortgage but a line of credit can use other collateral, different animal and it may or may not fit you needs.

The tax implications in the future will be this: less depreciation after year one (not by much as transient property is depreciated over 39 years not 27.5) and if you ever sell the property you will have significantly more depreciation to recapture. 

The cons are that wholesaling is in almost every circumstance, unlicensed selling of real estate and illegal in most cases. 

You season it for around 90 days and you as the owner sell the property.

I agree with John about settling on a property and running the numbers.However, if it were me once the market and property were identified I would form an LLC with an operating agreement that states what each members contribution and responsibilities are. 

Deals that are sold quickly usually leave less information, and deals that take more time to sell usually leave more.

Someone smart enough with enough influence to get the family to sell.

Having a 24 month term on the front end will also make my job easier doing the take-out loan when it's time to refinance into permanent debt, because there's room in there for a full year of tax returns to have been done in the middle (if your exit plan is to sell, it'll also make it easier on your buyer who will presumably be willing to pay a higher price if they can get an A-paper good mortgage).Ask for a 24 month term, tell your contractor you want it done in a year (and make it financially worth their while if they can pull it off), internally/mentally plan on 18 months, and I'm putting you on notice now to do your tax returns on time, rather than extending them (don't fight me on this, please just do it).Trying to get a renovation mortgage like this for only 1 point is likely a waste of your time, but if you want to ask, after you've secured the above as a 'done deal,' go for it, can't hurt.