The federal language in IRS publication 598 refers to "engaging in a trade or business activity on a regular or repeated basis".  

Basic contract law governs your contracts and agreements.

@Greg Despres @Ray Hovorka @Kaz Lawal @Nikolas Ferreira @Erick GomezWelcome to BP Ray.Hope i'm not late to the party...this could be the makings of a cypress investors club...I too am in Cypress and looking to network with wholesalers, fellow investors, and real estate agents (specifically who have experience dealing with REO's and government foreclosures.)  

Are federal/state taxes due as a result of the title transfer?  

Everything John said is on spot, especially it being a high end neighborhood you could get the city interested in helping you'll need your salesmanship to do it, a lot of times as far as I know Governments aren't giving out money these days for renovations but they maybe able to steer you towards grant money, overall it sounds like your father has plenty of time to decide and that number one is in your favor I wish you the best I get the feeling you'll  gut the house and do a major redo make sure you send me photos 

He is retired military and works for the government now.

Funds control is not that hard, I have been on the contractor side of a fund control project, although it is for a government agency, I think it is the same.

Remember, however, that the BBB is *NOT* an arm of ANY government - it is a corporation with an official sounding name.

Being satisfied I usually something governed by ones character.

Another downside is you loose on the advantages, of the Federal Tax Code, by not closing in the name of a LLC.