By the time we are our parents' age, our properties could be paid off/cash flow well, and we are sitting in an amazing position. 

What I take from the stories here is that OP's friend's parents transferred a house to a lady in exchange for taking over the payments.The lady stopped making payments and filed for bankruptcy with $7k left on the loan.

I know that years ago when my parents rented an upper floor the top floor got no yard.

Where "distressed" sellers are the heirs who live 4 states away and are too busy with their life to spend the weeks clearing out all the items of the PERFECTLY MAINTAINED home there parent left them, and they simply want the $, and things to be done simply. 

Some idiot that was inexperienced at BRRR got in over his head(upside down) and resorted to leasing to a soberhouse operator across the street from my parents nice SFR in an affluent neighborhood....first the friends and ex-dealers come hang around the house, but, they are not allowed inside, so they all hang outside on the stoop or just down the street, if that's in front of your 80 year old parents house, too F'ing bad!!!...

Then, with the end of year bonus I would like to use that as a down payment to buy a single family home near my parents in Atlanta.

I was raised in fear of debt, my parents went bankrupt with their flower business when I was little.

Student rentals are fine as long as you get the parents on the lease.

Doesn't tell me a thing of what they are doing.https://www.freedommortgage.com/freedom-loan-servicesBut, the parent compnay seems to licensed in ~49 states --- they have a page full. 

These organizations utilize endowments and donations not only to fulfill their missions but also to catalyze economic development within communities.This realization has broadened my perspective as a real estate entrepreneur.