Depending on your involvement, you may be self employed and want to be sure you are recording this properly. 

The main objection is if we have to use multiple investors on deals and what position each investor would take within the deal.

The other thing is my father wants to retire and selling the property would be his retirement money which he is afraid he may loose if we go through in getting involved in a huge project like this.

My family is involved in the trades and and I've heard of $850-1,000 per square foot up here.

Best of all, given the low loan-to-appraised-value, you might be able to avoid giving a personal guarantee to a private lender.The real question here is how much this deal actually makes you, in relation to the amount of time and effort involved.

I wouldn't have them involved on the financial end at all. 

And... as an added benefit clearly identifies whom we rent to if there are multiple qualified applicants.

In marketa of high liquidity, by under pircing a property, the market will self correct upwards by eliciting multiples offers and bidding the property up to the market value of the property.So if your market has high liquidity, raising the price is not the answer.

Additionally, since the $86,000 is being allocated to multiple projects around the property, the units will not be fully renovated but the rent be at market value.

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.