I have gone through the listing broker on REO properties and had no issues.

The problem is that the existing home was not maintained and has major issues (foundation, sagging floors, mold, possibly a new roof and new electrical) so I'm trying to get a ballpark for what it would cost to bring the existing house up to rental quality vs what it would cost to just bulldoze it and build new, or if its even worth touching at all considering the value of the property. 

I also used them to perform a few maintenance issues, which was paid out of the security deposit and 1st months rent they collected at the lease signing.  

Another issue with respect to the source of the down payment is that while you can use gifted funds to purchase a primary residence with a conventional loan, you cannot use gifted funds as the down payment on an investment property with a conventional loan, to the best of my knowledge. 

Liability risk is high, insurance coverage will be an issue, you will get sued if there is a drowning and a waver will be of zero protection.

You should expect that the building is not in good shape and there are many deferred maintenance issues.

My experience is that a big part of this industry runs on personality and being able to connect with people, and if you cannot do that you will be at a distinct disadvantage over others who can. 

I have a minor termite issue on one of my first properties.

I would need to hire a local management company (or, at least, a local on retainer to be available to deal with issues).

You could split the income and expenses 1/3 each but another issue I want to point out is that when your father added you and your brother to the deed, he made a gift.