Both our parents have some extra cash but I am a bit reluctant to ask them especially on our very first deal.  

The Skinny Offer usually is understood and accepted by sellers of residential and land owners.Commercial Long Form Contract Offer, this is only three pages, but has everything in it that is needed to make the deal work and to will defend the investors position in court if it every comes to that.Locator Program, a networking system with trained Locators (neighborhood people and others who want to make extra money in real estate but don't want to spend the money or time learning how to be an investors), a good Locator is capable of supplying many potentially profitable leads.

You want easiest avenue, with extra income, partner up on a Rehab.  

Adding extra walls or portions of walls would add to the cost of encasing them. 

SELLER CONCESSIONSSeller concessions include, but are not limited to, the following:Payment of the buyer’s VA funding feePrepayment of the buyer’s property taxes and insuranceGifts such as a television set or microwave ovenPayment of extra points to provide permanent interest rate buydownsProvision of escrowed funds to provide temporary interest rate buydowns,Payoff of credit balances or judgments on behalf of the buyerSeller concessions do not include payment of the buyer’s closing costs or payment of points as appropriate to the market.Any seller concession or combination of concessions which exceeds 4% of the established reasonable value of the property is considered excessive, and unacceptable for VA guaranteed loans. 

Is an effect counter argument that the down payment is small but I'm paying you an extra $150,000 more then anyone else, not to mention the interest you make on the $550,000 for the 5 years?

If you are making HUD offers from out of the area there are a few extra steps that need to be taken to submit offers and tender a closing.

How much is fix up with an extra 20% fudge factor for problems that will occur? 

If the Seller wants to try the rent-to-buy scenario, he could also put that idea to his existing tenants as incentive for them to pay him extra per month?

A lot of times it's nice to have an extra hand on the job.