The LLC will be renting the property from my father and he is willing to share some of the cost for the rehab and upgrades.  

As much as anything like @Chris Seveney points out frequently the annual reporting can be complex and costly and its mandatory otherwise your running some serious SEC risks.. 

But you are effectively putting yourself into more debtThere is good debt, and bad debtStudent loans are IMO bad debt - yes you get a degree that gives you a good paying job, but it costs you money every month to hold that debtReal Estate debt if used properly can be good debt.

Worked really well and it didn't cost me anything.

Question - Why do the total project costs not include the holding costs? 

If you are close to retirement or looking to plan ahead I would recommend, Cashing in Tax Free written by Leslie Pappas. 

These areas have much more active management of properties with more collection issues, more turnover costs, more vacancy, etc. 

Second, no one will do work for free.

They may cost more than a c/a system alone depending on how many units you need.

Aside from the cash-refinance cost itself)3) Does this mean the new mortgage (30-year conventional for the apartments) be based on the $1.8M with new interest rate (at the time), etc.?