Even if you did a horrible, barely cash flowing property with the $155k, it'll still net the difference + some.Don't get caught up on the "I don't want to lose my rate".

The higher splits go directly to the participating investors, we don't take any cut.

The other barely paying or not paying at all.

Home appreciation has been still quite solid.Most of the rents went up barely, if not just trended flat.

Now that it's a rental the home barely cashflows due to expenses and the high mortgage.

Parent A and parent B are married and paid the mortgage in full.

Once I finish renovations it will be worth 175k bare minimumMy question: what is the best way to start from here?

Class B would be older (maybe 10+ yrs old) with the same amenities, or you could argue that new construction, but with cheap finishes and "bare bones" amenities, would also be B.For area: it commonly comes down to crime, schools, and convenience/entertainment access.  

Many of us do not read this by the category and the multiple posts discourage participation. 

If you file jointly then a spouse's material participation should count.