One way is to invest in individual projects which provides them an opportunity to really get a sense for the impact that their financial investment is making.

The fact that you can measure the thickness of the financial cushion you've built between you and poverty also helps lessen the sting of the years that you spend clawing as hard as you could to get somewhere.I think a lot follows from being clear on those two points starting out.

The only time personal guarantees may not be required is if: the property is underwritten commerciallythe corporation is established for at least three yearsthe corporation can provide three years full financial statements and corporate tax filings that are strongthe corporation has a high asset base, andthe corporation has positive cash flow and consistent net profitDo you set up a holding or operating company?

Now you have to weigh how long it will take him, vs waiting for someone else to be able to get there and finish it, then factor in the added cost of the new crew vs what you're losing in revenue waiting for him and see which one works out better financially.

I get the feeling the 1031 is the smartest financial move, but I'm not sure how much time and energy I'll have to put into it, particularly since I don't personally believe the Seattle area is a great place to invest in any longer.

Whereas I just wanted a clean financial transaction.

They are obviously financially struggling which makes them high risk.

If you utilize seller financing, you can sometimes get the seller on board because they get their sales price and you get favorable loan terms2)  They don't need the cash right now (retiree, empty nester) and are financially astute enough to see how collecting interest for 5-10 years on their note can be very profitable.Which argument works completely depends on what the seller needs.   

I'm likely going to be a Trustee and I'm wondering if there is any financial advantage to my Dad creating a corporate entity and transferring the house to the company, and then the company to the Trust. 

You spend more time.Start with QuickBooks, as you will know your numbers - equity and financials.