I've had many rentals in CA and Ohio for over 20 years, solid liability insurance for the properties and umbrella insurance for outside risk (if/as necessary) has been way more than adequate and worlds less administratively burdensome (plus you don't pay the annual $800 fee for each LLC you own that carries on business in or out of CA as almost all do under the incredibly wide scope of CAs franchise law).Sounds like they are selling you a real Rube Goldberg special, one that's likely unnecessary for basic small landlord activities.

Partnerships can be complicated - and like Jeff said, can end friendships.

You and/or your father's tax situation is about to get a lot more complicated, and compliance isn't going to be cheap.

Don't take out unnecessary debt and work on saving money.

If lease options, with nearly zero downside, can be used in these complicated subject 2 and WRAP mortgage arbitrage deals, is anyone using them in wholesaling?

No sense making things more complicated than they need to be. 

So if you take title to the property before improving it that ends your 1031 opportunity.But if the QI takes title then you can include the improvements in the purchase price as you won't be taking title to the new property until the improvements are complete.A reverse improvement exchange is a bit complicated and pricey. 

I'm sure this could be done, but why do you want to create this complicated setup?

Unless super complicated, most of my full blown comps take 15 minutes.

It seems like I may have just complicated my situation.