I don’t have kids, but I grew up at least in retrospect pretty well off as did both my parents, I am one of the least entitled people I know as are both my parents, that’s attributable to a few things imo, one is just pure personality, I know some people that grew up dirt poor and are extremely entitled and other people that are crazy rich and you’d never know, some of that is just random luck, but I think another key is while we’ve always have had the security that comes with being pretty well off, we’ve going back generations lived below your means, my mom grew up in westchester county New York which is a crazy rich place, my grandmother intentionally moved my mom to a frankly pretty mixed income school district so she didn’t become spoiled, I grew up until I was 13 in a very middle class neighborhood, went to middle class schools, hell my mom up until literally this week drove a 13 year old ford explorer with 155k miles.

I'd strongly recommend seeking out other purely passive accredited investors and focus on building real relationships.

It's a pure business decision, so treat it as such.

guess on my part but at that dollar value and with you guys having an interest I suspect the trustee wont do much about it or spend much time or money on it.. purely speculation on my part of course.

That entire area is basically pure residential housing. 

It's pure genius.  

It is purely friends and family.  

This is much different than CORPORATE credit, which is purely EIN based credit with no personal guarantees.

Is this a pure cash flow play or long-term growth through appreciation? 

It'll be tough to get into a pure investment in your area for 35k but here are a few options:- partner on the second deal- if the numbers make sense and you could get more cashflow then you could look at a higher price point but my guess is this will be difficult to find- Buy your first property as planned, and save the 35k as reserves and/or just keep it for the next down payment on another FHA after a year- find a place that needs some work where you can use that money to fix up and force appreciation to the propertyPersonally, I would look at those last 2 options where you have the cash on hand ready to deploy for the next down payment or rehab costs if needed.