Even if the cash is the same as the Quiet title action, it benefits you to not have to wait for that action to take place.   

Essentially, if you can reasonably expect to make a similar repair within the useful life of the asset (not to exceed 10 years) you can deduct it. 

Whats the benefits from doing that?

You are essentially paying $105k for a $115k house.

The IRS essentially sees it the same as taking money out of your left pocket and putting it in the right.

If he (or you) don’t want to deal with real estate any more in his retirement, you could 1031 exchange to a DST (or portfolio of DSTs) - defer all the tax - get income from the portfolio - and still get benefits of real estate (depreciation, possibly tax advantaged cash flow).

Essentially I’d be paying about $150 per month out of pocket every month plus accounting for maintenance and HOA ($150) to keep the property while the tenant pays $1000 towards principal so I would net +$700 I just wouldn’t see it in terms of cash flow because it would be tied up in equity.

So essentially this wont work, since her daughters could potentially own half ?? 

The timing seems about right for you now to actually benefit from your investment.It is one thing to be able to brag about owning a million dollar property it is something much different to actually have a million dollars.  

It seems too good to be true, it is essentially listed for $600k.