Just a quick piece of advice, the daughter must have conservatorship over her father - signed by a judge (the person living with dementia maintains the right to make his or her own decisions as long as he or she has legal capacity. 

What you should be doing now is assessing your new purchase and set up a plan for maintaining its condition by funding your CAP EX fund. eg. 

I certainly intend to keep glued to the podcast, while reading all the material I can get my hands on and complementing my study with attendance to local REIA's.I'm sure I'll have more questions and I look forward to sharing with you.Aris

Study zillows price history for area flip sales for offering at a high price... price drops, then selling at 80% of original listing. 

It will take some study and learning about real estate markets.

Small house that was well maintained What made you interested in investing in this type of deal?

Maintain and continue to build the relationship.

Sure a cash out refi could be great, but taking secured debt to paid unsecured debt really will put you in a potentially risky situation should anything happen where you are unable to maintain your payments.

They have studied the eviction laws and know all the loopholes to exploit on a DIYer. 

The best way to start is by saving money and studying real estate investing (reading, talking with people who do what you're interested in, learning the field etc)Once you start, you need patience, you can't give up.