Now after the seasoning period of 6 months to a year I plan to refinance and cash out to repay my parents and hopefully make a profit assuming the appraisal value is higher than my purchase price of the property. 

If you owned the house for 2 out of the last 5 years and lived in it in 2 of the last 5 years, and your profit did not exceed 250K (if single) or 500K (if married filing jointly), you will not pay capital gain tax.  

If they don't don't exercise the option in 5 years, we can just sell the property or do another lease option and we stand to make even more.The reason I like to do lease options over rentals is because in the majority of cases, I don't have to budget for the 3 highest expenses that come with rentals: vacancy, turn over, and capital expenses.  

Since you and your brother are entitled to 1/3 of the profits on said property, this is a complete gift and your father needs to file a gift tax return, Form 709.

Especially in a market like mine, we've been in majority of the listings and the sold comps, or if not, we've likely talked with an agent/buyer/inspector/etc who has and has given us the bullet points.

One idea would be for me to contribute 20% of the funds plus everything mentioned prior while he provides 80% but we split the profits 50/50 what are your thoughts and/or experiences?  

I did not over analyze this, but I followed the advice of my attorney and the majority of local investors  hold their properties in LLCs.

And are there any major concerns I should concider so I don't screw myself over?

And are there any major concerns I should concider so I don't screw myself over?

Okay, I need some major help from someone that currently bought real estate with a partner @Linda WeygantWe are trying to buy one SFH in one person's name/credit.