They raise the money that is needed to purchase with the financing.  

Further, this type of operation is not financeable at anything other than the high end of hard money rates.   

Meanwhile the conversations my mother had the most of was with the dryer or washing machine or real intelligent ones with us kids..

The seller is getting his money from my 2nd or third on the property.

Save more money too you will need reserves even if you can get a low/no money down option.

Honestly if your DTI are at the limit already and your parents need the money, sell it.

Whenever I take my spouse to one of these 2000 SF houses, I can see money and potential, but he doesn't want me to buy.

Blaming Loopnet for an allegedly bad property manager is like blaming Zillow for an allegedly bad realtor...I'm sure if Loopnet was stupid enough to give ransom money to BBB, BBB would take down the bad reviews and un-filter any good reviews (which is the entire business model of BBB).

If you have the money find the top player for sub to in your area and partner up with them, just make sure you got a great attorney to help structure the partnership.

Its a great way to start investing and save more money to get your next house.