Matt, if your IRA owns a house free and clear you can finance it and get a mortgage on it (I doubt you can get a line of credit).

I doubt you are doing something wrong with showing your places if that is all you have vacant at any given time.

If tax assessor does not know, I doubt you will figure it out.

If you say now he is not trustworthy I have doubts about whether you will align on the business goals.

As such, I am going to replace the tub spout and recaulk along the ridge.I had three questions though..1. i am assuming there is mold on the sheetrock (its not cement board) behind the tiles.

You are summoning up advice opn a public forum (from strangers, no doubt) in order to give your Father unsolicited advice. 

Unless the owners listing agreement specifically allows him to sell and save the commission (doubtful) the agent has earned a commission due to your contact with the seller during the listing period i.e Exclusive Right to Sell Agreement which is nearly all listing agreements.

I doubt the MLS will give you many solid buys. 

There are several variables here I have yet to work out, such as, the exact working in the Note (I want 50/50 profits, you may want to pay only interest), when exactly to record deed of trust (if you record deed of trust prior to recording trustee's deed I doubt it would rise to the level of being a lien), do I give trustee's deed, note and deed of trust to my escrow agent and get a lenders title policy thereby insuring the lien and allowing me to possibly sell the note.  

Accordingly, I doubt I will have anywhere close to 20% equity at the end of the first year and a half through applying the rent to the mortgage and interest.