If you're going to manage the properties yourself and deal with C and/or D tenants this is probably something you're going to need to prepare yourself for.  

any creative ways to use the current owed taxes to lower the selling price? 

I typically recommend planning $200,000 to $250,000 for an ADU above a 2-car garage, but creative construction methods, owner involvement, and careful selection of finishes can help to bring that cost down.  

He's open to something creative, rather than taking the windfall of a typical sale.My goal is to obtain the property and maximize the value for myself and my dad.

He will not accept MAO but is open to creative financing.

I have recently started studying real estate and I am preparing myself to enter the world of wholesaling properties in the Maryland area and beyond.

Make it clear that you've listed everything about the piece and when they come to see it, they should be prepared to take it with them.  

I really want to know about forming an LLC so that I can get the tax benefits for all the improvements I have made to this house to prepare it for renting. 

any creative ways to use the current owed taxes to lower the selling price?

At which time you will make your decision.Once I offer to rent, the applicant must be prepared to enter into a rental agreement and submit all the necessary monies.