The return is much higher than mutual fund investments, and it's MUCH more interesting.

I heard a Pod Cast this AM about setting up a REI Fund to fund properties.

Plus 50% of any increase in the price, if there is any.Most HML look at 12% with less risk (70-75% LTV vs. your 100%).

I'd consult with your lender for the specifics of how the funds should be transferred from your family to you.

Given my limited amount of funds this may not be the best place to start, but I find the idea intriguing. 

Work must be done with licensed contractors and completed within 180 days after closing.The loan is based on purchase price plus rehab funds, which are drawn down as work progresses.They also include a reserve 10% minimum for potential budget overruns.3.5% down is based on the total amount borrowed.You also have to pay closing costs, which are substantially higher than a traditional FHA loan.

So I will be putting out $22,500 of my own money to fund this deal.

Many debt collection companies have funds set up or just this purpose.

Counterproductive to your end game.Roll the IRA into a self directed version and buy the property with IRA funds (you can get a non recourse loan too).As @Christopher Phillips mentioned, every property needs to cash flow with at least 70% financing or it is not a good deal from a cash flow perspective.Also, this $700 or so cash flow you are quoting, does that take into account all the expenses?

Im new to real estate and have been looking at different ways of getting funding and am not sure which method to pursue.