It would be best if he calls the city and asks them to turn it in (although it is already on) in order to establish service for 2 reasons: (1) He's going to need to have the water on for the when the property gets inspected (banks won't loan unless everything is proven to be working) and (2) Right now the city could charge him with theft of water by turning the water back on himself (well, really the contractor did it but the city does not care). 

As a contractor you ALWAYS work using the customers money .

Here's what I set aside per unit:Taxes:  ~ $100 per monthTurnover expense:  3.5% GSRWater/Sewer/Trash: $30-$45 per monthMaintenance: 12%Cap Ex: 2.5%Overhead: 1%Insurance: ~$25/mo.Debt service (100% leveraged): $350-$400EVERYTHING ABOVE is increased by 10% to account for vacancyAll told, each unit still cash flows between $100 and $200 per month.These are B-/C+ small MF properties.Note I do not pay for management as I self-manage, but that is offset by the increased debt service created by the 100% leverage. 

Hopefully someone can help shed some light on what my options here are:I've been speaking to my dad, who is a service disabled retired veteran, about working together on some REI deals.

Ask the title companies.But take heart if the goal is good service with an experienced accommodator. 

Call Luke at 970 Services!

However, the solo 401k plan permits an in-service distribution of such amounts upon attainment of age 59 ½ or upon a Hardship.https://www.irs.gov/retirement-plans/plan-particip...

@Omar KhanCould you also pm me about your services, I'm I'm in Dallas and have 60k to invest asap.

IMO, that's the simplest way to get started for service members.

It will likely depend more on the property's debt service coverage ratio than on an arbitrary percentage.