Also, the concealed units eliminate the ascetic issues because they are behind the walls.

Cash is not in your account currently to do this and you are still paying the taxes and mowing the grassSo here is the breakdown of that scenario.Currently I have spent 50K to generate 1475/m and if factoring 50% in expenses for maintenance, management, vacancy, etc. results in a 17.7% ROI - with 25K equity not bad but....if fixed would be 115K total spent generating 3350/m which is still 17.5% ROI but your equity now would be conservatively 50K  and eliminate any cap x for years to come.This is a C-D neighborhood.  

If you have built up equity than I would refinance into conventional to eliminate the mortgage insurance.

The 1031 Exchange allows an investor to defer the taxes indefinitely, and the taxes can be completely eliminated upon death with the step up in cost basis, while the monetized installment sale realizes the gain (but not recognizes the gain) and the investor will never qualify for the step up in cost basis.  

But there's no reason you can't achieve that while also cutting down or eliminating your mortgage by house hacking.

Great advice @Mateusz Prawdzik managing the portfolio for them until you have the finances would be a win win, it would eliminate their responsibility to be hands on, while also still making them income.  

You don't eliminate the risk, but you are looking to reduce it by not putting all your eggs in one basket (or dirty veggies all on one plate).If you buy one railroad stock, you have risk from the company performance, industry performance, and the overall market and economy performance.

You've made a good decision to eliminate carpet.

I decided with email and cell phones that I could eliminate property management company and do it myself. 

This way, it eliminates a good part of the gift, if lets say the $60K is buying half the property, and you actually paid for half of it.