That makes your bookkeeping easier, and it can also provide liability protection if you hold title in an LLC.

We helped her move to PA from FL, provided a furnished apartment at a reduced rate for a while, etc.

Now the decision between option 2 or 3 depends on a few variables.

@Adam Newman you will want to confirm this with the bank but you can’t take a loan out to borrow for part of the down payment so you’ll need to provide all the funds yourself or have a gift from someone for that which you don’t have.If you have a gift from someone to bridge the 20%, that would be ideal.  

It depends on what you want to invest in.

Or paying off my debt, while I provide them with a nice house to live in instead of an apartment. 

You will need different attorneys in different states depending on where they are licensed.  

With $50K and a DSCR loan, your budget will likely cap at properties in the $150K-$170K range, depending on the closing costs and any repairs needed.

Depends on what your goals are. 1-4 units are still residential, so it doesn't really matter how you start.

With the amount of support they provide I am not against settling for an 8/10 deal.