I'd just suggest that any friends sharing your post don't promise "security" or a "quiet area" as that can get you in trouble.

I can't loan them the $40k secured by the house because its not in their name. 

Make sure you get your security deposits when you close.  

Would each house need its own bank account, security deposit account, and credit card in this setup?

Figure 10% higher tax (cap gains vs ordinary) and SE tax isn't too bad If someone is over the Social Security limit however still sucks paying it. 

FHA requirements for owner-occupancy state "At least one borrower must occupy the property within 60 days of signing the security instrument and intend to continue occupancy for at least one year".Not sure what your exit strategy is, but keep in mind you need to season the title 6 months before you can cash-out refinance into a conventional loan and use the higher ARV.

Directly from Allregs  Fannie Mae's guides:Limits on the Number of Financed PropertiesIf the mortgage loan being delivered to Fannie Mae is secured by the borrower’s principal residence, there are no limitations on the number of other properties that the borrower will have financed.

The title company should provide this on an official document with their letter head and the amount transferred.

Hi @Anestis Kapolas...have you ever considered finding off-market properties and working with sellers to secure creative financing?

Whoever is offering the securities needs to verify that you meet the definition of an accredited investor.