Being that I have no real experience with real estate I am also interested in exploring pretty much any other method of real estate investing.

These places really do need a power washing because it is littered with gum, dirt, liquid stains and so on and really does make the places look terrible but these landlords will not budge on getting it done but will happily spend a a couple thousand a month on landscapers to trim bushes and cut the grass every week.

In general, the more money you put into the deal (down payment, rehab costs, etc) the lower your CoC is going to be - unless you do a refinance using the BRRRR method. 

As things are occurring now, the bank is being paid, so they have no interest in property seizure or foreclosure, as it is a performing note, so the FIL currently has the opportunity to conduct control of it in the same way a normal person would, which should allow him to pass this via normal methods (living trust for example) to heirs, provided the payments on the note have no interruption.Am I off on any of that?

The other method is where the sponsor calls for all of the capital at once, and the capital sits idle with the sponsor until acquisitions are made.  

My advice to you would be to learn the various methods of real estate investing such as wholesaling, flipping, buy and hold, tax liens, etc. and also learn your area to see what has been successful there. 

My engineer has confirmed that all walls coming down are non-load bearing and I can do most of the hammer swinging and plaster/trim repairs myself.

The average working month has 4.33 weeks in it, so you can get the same answer using your method by doing the following: $14.50 X 30 X 4.33 = $1883.55 or very close to the $1885.00 However, we as lenders use the method that the instructor used.

How long does one need to own before taking advantage of the BRRR method to spin funds back out of a property?

How long does one need to own before taking advantage of the BRRR method to spin funds back out of a property?