He is absolutely taking all the risk in the scenario you laid out.

I have absolutely no idea how the Bay Area market functions, so I'm not at all qualified to answer whether that's predictable.I think it's equally risky to an investor putting up $100,000 on a property that the investor expects will generate $150,000 in profit. 

The cast iron he says was clear is absolutely not clear, and it’s level, instead pitched properly, which he would have noticed had he run water during the scope. 51 ft of cast iron is going to get ripped up in my basement.

What is the absolute best and easiest software to use to manage rental properties?

I have seen it but have absolutely no experience installing it.

@Alexandre Marques dos Santos  I've bought a few properties off auction.com and you absolutely have to do your due diligence. 

The easiest way to analyze a deal is to simply make sure your property does an absolute minimum of 20% of the purchase price per year.

Absolutely, but the seller isn't "gifting" anything.

we do  and absolutely agree with Michael

There is absolutely no reason to transfer title back to your name....at all.