(Anything that isn’t your primwry first is only tax free on a pro-rated basis.)I don’t know how you could swing it but…If they gifted you the kand they would avoid their capital gains tax.

I’m told taxes and insurance is lot and will rise each year and cash flow is hard to come by.

For lending, your rates are going to be higher than if you were to buy under personal name.

If they have a good interest rate it might be worth looking to see if you could assume their loan to take advantage of the lower rate.  

I have a 2.5% interest rate on the balance of the mortgage. 

Your ability to turn around a property with an 11% cap rate is a pretty strong selling point.

Death Rate: The death rate has been gradually increasing.

Interest on a HELOC is adjustable, if interest rates rise you are screwed.For you folks that weren't in real estate in 2003-2006 and when the market started collapsing in 2007.

So why would we buy the cash flow at a rate of 6%?

You snowball plan has a very high success rate.