Yes he can create a limited partnership and give the main interest to his son and still remain in control of the  property so when he sells the property he will only get taxed on the percentage that he owns.

You are left with a remaining 50% of gross rents this would be your cash flow/Income/profit per door.

I purchased a home back in 2005 that I thought I'd rent out but I was inexperienced and didn't realize how over inflated properties were back then.

And in, say 10 years, you can always refi your remaining balance into another 20 year loan and reduce your payments that way as well.Lets say you buy a house and your mortgage is 100k as a 20yr loan at 5% - which is pretty typical for my local banks these days.

They do not like seeing folks 'inflating' purchase prices just before close.  

I see people saying that the title is free and clear, does that mean I do not have to pay the remaining balance on the mortgage? 

I obviously understand that there will always be deals, I am just trying to remain realistic as I am building my business plan.

Also, if the property is underwater, you could sell off the remaining UPB at a deep discount, 3-9 cents on the dollar, if you wanted to be scrooge about it.

Some only lend on the purchase price (70-80%), which means you have to come up with the remaining 20-30%, closing costs, and rehab costs, some lend on the both purchase and repairs, and some lend on the ARV, which typically covers your purchase and some repair costs. 

The buyer can demonstrate to the seller that while he is buying at a discount, they are getting a nice chunk of cash now, and when its done they still have most of their current principal remaining on the debt.Obviously, this type of investing requires marketing directly to private owner finance note holders.