I am currently in my first year of my W2 job (post graduation), and after a year of listening to Bigger Pockets, getting my real estate license, and allocating funds, I have finally decided to dive head first into my first investment.

The reason I ask this is because the biggest hurdle you are going to face in the current market is falling rents in contrast to raising financing costs. 

Since my capital is low I was planning on utilizing my credit cards to fund the rehab.

Plan to buy real estate for a child to attend a 4 years med school and share with the other students. Hopefully the property will be easy to sell or rent to the college students after the child graduation. What type ...

That's why personally like to use NNN funds with thousands of properties so the few "go dark" properties have little effect when the others are fine. 

@Trino Martinez I have a 60-day notice in my leases so if I’m raising rent I send notice plus list of recent nearby rentals out 90 days before lease end so tenant has a month to research then give their 60-day notice to vacate if they choose.

I am an attorney.You do raise a good point that should be clarified and is some of the reason I posted.

Can they do a 1031 exchange and use their funds towards the down payment of a property and have their daughter take out a loan alone for the remainder of the purchase price (since she has a higher credit score)?

I recommend you reach out to the proper authorities to pursue this matter.That said, I appreciate you sharing this here so that others might learn from your experience.NO legitimate lender or broker should be asking for significant funds upfront: When the loan gets funded, then they get paid!

There are costs associated with doing a HELOC.If you WILL be living in the property for the first year, get a 5% down, or less, FHA/Conventional/203(k) loan for the purchase and keep more of your money in your pocket for future purchases, repairs, etc...On the second property, use a private lender to fund the acquisition/repair costs if any, and refi out using a DSCR in 3-6 months.