Thank you for your response. 

@Jeff Whelan Yeah it seems @Christopher Phillips didn't understand that you're talking about a house you've taken over the payments on.I'm not sure about lenders in the US but here in Canada if the seller shows them the lease they will only credit 50-75% of the income toward their income for the purpose of DTI calculation.That's probably the best your seller is going to get if you've taken this property over on a lease option.

Our thinking is to do buy and holds in a place where we can pay responsible family to manage it. 

I wrote the above for informational purposes.

As the owner of the home, you are responsible for these costs, no matter what they are or what you want to do with the property.

Father's removal will be a gift to daughter for federal tax purposes and a gift-tax return will need to be filed, and unused lifetime credit will be reduced, or, if already all used, gift tax must be paid. 

If you consider yourself responsible (sounds like you are with house hacking and being able to buy a property), PMI is just horrible.

They present what they think the house is and it's your responsibility to verify.

They're more understanding of situations like yours, more nimble, and responsive, i.e.: you can get them on the phone anytime. 

They're in Lake City, but very high integrity and responsive.