I know the advertised returns aren't guaranteed but 7% annualized monthly cash flow with upside of an additional 13-20% annually when the property sells, aligns well with my investment goals.

The parents will co-sign the lease and pay Direct Deposit with First, Last and the only guarantee you have in Rentals, a Deposit. 

So $1997 upfront and $299 a month after with a 3-Day refund money-back guarantee?  

Section 8 is guaranteed income on the first, allowing me to scale my business.

but there lies my biggest concern, while I am investing in areas that I believe are going to appreciate dramatically as that is where some real money is to be made, I am buying to cash flow and not guaranteeing to myself or to anyone that the appreciation will really happen.

The non-tax Depreciation Expense (assuming 80/20 improvement to land) will result in an annual $11,132 ($382,650 * 80% / 27.5) depreciation expense which will exceed the $3,000 IRS limit but will guarantee you have no current tax liability for this investment for a long time.

I guarantee, it will be a hefty sum to run a line from the street to the house.

Do two inspections for laughs, a guaranteed surprise.

Unfortunately nothing is guaranteed, but that's going to give you the best shot at success.Keep me posted on how things go and let me know if you need help with anything.Keith

And obviously, this figure is not guaranteed.