Did you use a calculator or spreadsheet, or did you simply work out the math like rental income minus PITI, 8% for CapEx, 8% for vacancy, and 5% for repairs?

You may also be able to simply QCD the property in your LLC but you run the risk of the current lender calling the note due because of the transfer. 

When I talk to sellers, I simply asked them when do they want to close.

Overall, it was good to me, but it was certainly more work than market rate tenants, simply because I effectively had small turns every year with the inspection repair lists.  

I'm not simply just gonna put down direct mail either.

That is often the most difficult first step for investors, is to simply get started. 

We thought about fencing/gating ours and making a community or just simply adding garages if it doesn't get too pricey.

If they are simply joint owners of real estate through a partnership, his w-2 hours would not help for REPS status, they would hinder as TP would need to work more hours managing their personal rental properties than working at the w-2 job and meet 750 hours managing them as well. 

And insurance is still required.I’m not suggesting this as the go-to strategy, simply trying to better understand.

They really don't have the power or right to place any kind of lien on the property while they simply have it under contract and aren't doing any improvement to the property.