Our goals: Obtain another investment property while not having to pay anything for a down payment.I envision that my in-laws would use $250k (equity in current house) as a down payment to get into a new smaller location.

My Father has been renting us a house in OBX every summer since I was a kid and were both pretty affluent now and I'm floating the idea of us going in together on an Oceanfront somewhere in OBX that we can use a few weeks a year and have it pay for itself via rentals the rest of the year. 

Any of these things happen and you’re on the hook for a lease you can’t pay.

Title company pays off $450k note, QI holds your $550k that you’ll then use as a downpayment on replacement property or properties.

[That's an extra $18K a month we didn't anticipate which really helps to offset those extra operating costs.]

Amy you will get your EM back.. so inspections you will not.what could you be paying interest on when the deal has not closed yet?

So in this scenario the only profit is in the yearly appreciation and increased equity of $6,000 per year of principal payments.Exit Plan is to sell, take the equity and likely use in another investment.If I sell now instead of renting the upside I see is pocketing $85k in appreciated value after paying real estate fees.

Now: Pay contractors what they're asking.Then: Argue with tenants about what to fix and what not to fix.Now: Fix everything. 

I was wondering if I could pay an accredited investor money for him to invest and share in the profit?

If you have financing on a property and you sell it on a wrap, everything works well until the lender calls the note due.Since you have sold the property, you no longer own it, you can not refinance to pay off your lender.