I have 3 rental property, they all have about 60-90k in equity.

So basically your dad is willing to give you about $20,000 in equity for a 70,000,00 loan he has left to pay on this house.Your out of state, house is rented, but as rental is not losing money and is covering it's own costs plus making hopefully some % of profit. 

I have approximately $93K combined in equity on both properties.

I like pre-con/new builds because it's easier to refinance and get the PMI off because of the built-in equity bump.I'm not sure how useful this is but just so share what I know as an individual investor (I'm not a licensed agent, but work very closely with a group of great agents who specialize in investment properties who are also investors themselves) who's fairly familiar with this market, here is a good real-life example. 

.- I bought a beat up home Sub2 in a great area 2 years ago and fixed it up while living in it and built up $200K in equity.

However, in my experience drama is more contagious than genital warts and should be avoided in equal measure.

The added possibility of a bump up in equity over night is icing on the cake.

I paid 136,000 for it, and have about 11 thousand in equity in it.

The fund will take a hit as the cost of doing business, and still keep going.With that said it makes sense to sell some assets (depending on business plan, especially if things haven't worked to expectations), to the institutional player when the market is high ( It would take years to make the money back that is sitting in equity, if we waited for rents to rise and get the cash flow.)

So if I were to find a property with an as-is value of $85,000 and I got the property for him for $50,000 then there would be $35,000 in equity.