You are fortunate to be in the situation where your parents have so much equity available and you are smart for leveraging that position.

Option 1 is far and away the best choice.  

Brian and Mark,   Sorry for missing your posts above Adams – read them in the wrong order with the smart phone.

- Clint Coons / Anderson Advisors- Megan Hughes / Smart Business Incorporation- Garrett Sutton / Sutton Law Firm / Corporate Direct- Mark Kohler / Kyler Kohler Ostermiller & Sorensen

If the agent isn't smart enough to get that before relaying the info, they don't deserve the commission.

Success is a process, failure is a choice

I want to be smart with my investments, anybody have any suggestions?

Your wholesaler should have a choice, reputable title company that they can send contracts to and close deals with.

Your time here will be well spent.Since you expressed an interest in rentals, I added three links below for your review.https://www.biggerpockets.com/renewsblog/2015/03/27/financing-options-rental-property-guide/ (financing options for rentals)http://www.biggerpockets.com/renewsblog/2013/01/04/how-to-rent-your-house/ (house rental guide)http://www.biggerpockets.com/renewsblog/2013/02/22/buying-rental-property/ (how to buy a rental property)Now that you have made the move, below are some links that will help with the navigation of the site. http://www.biggerpockets.com/startherehttp://www.biggerpockets.com/meetSetting up Keyword AlertsHow to Use @Mentions on BiggerPocketshttps://www.biggerpockets.com/ruleshttps://www.biggerpockets.com/inviteshttps://www.udemy.com/biggerpockets-real-estate-investing-course/ (video with 64 lectures and approx 6hrs of material)https://www.biggerpockets.com/real-estate-investing (Ultimate beginner's guide to REI)Before your 1st purchase, please ensure you visit the below link for some tips.https://www.biggerpockets.com/renewsblog/2014/12/19/real-estate-investing-success-smart-tips/REI books suggested by BPershttps://www.biggerpockets.com/renewsblog/2015/11/13/7-real-estate-books-beginner-investors/ (7 absolute must read books for beginner REIs)http://www.biggerpockets.com/renewsblog/2013/04/14/best-real-estate-books/?

This business has Rules and Regulations that must be followed and policies and procedures that need to not only be implemented but followed.Tenants are very smart on what their rights are these days and if you violate them, even if by accident you will pay the price.