The one thing we expect as property managers is owners allowing us to do our job without being questioned each step of the way. 

Hey Tate, here's what my commercial lender @ US Bank uses for pro forma debt coverage calculations if he doesn't have 2 years and YTD historical data (basically, seller's schedule E's)Vacancy: 10% of gross rents, unless there is sufficient market data at the bank's disposal to justify lower vacancy rates for the type of asset in question, OR detailed historical vacancy data from seller.Management: 3% gross rents or actuals, whichever is higher, with property management agreement provided to close.Cash Reserves: 3% of gross rentsTaxes: Actual data used.Insurance: 3% of gross rents, or as shown by insurance policy.Operating reserve: 20% - 25% depending on the type of asset and amount of historical data provided.

I am not sure as to whether they are insured or not will protect the owner if the company does not do a good job of cleaning and preventing slips.

My future father in law is most interested in ensuring his daughter's interests were I to do this as a business full time, and leave my day job, asking for 30% of the appreciation of the value of the business or 5% of the appreciation of the value of the business if I continue to be an investor in the business as a "secondary" job.

@Bosko Mijatovic Especially for a job like that you will want to pull permits, un-permitted additions absolutely destroy the value of a home in many circumstances not only do you lose the money you spent to do it but you can lose the cost to fix or revert the addition. 

It would cost $800 to 1,200 for a good paint job.  

@Adrian Cooper, I'd make sure that leaving your current job is what you want. 

Get a CPA to Figure it out and provide the best strategy and let your dad concentrate on selling the jobs and completing them. 

I have no idea what the tax code says, but I've seen people write this off on Schedule C with no subsequent audits to the best of my knowledge.

This is because I realize SFR investing can't realistically scale beyond 20 or so properties without become a full-time job and I'm not there yet.