If you have 80k cash, you should have many options to invest using rental financing.

Is there another option that the kids should consider?

I inherited a house and am currently exploring options to use it to get money to consolidate some of our debt and potentially have money for a multifamily.

If you do, keep the balance low and take advantage of the zero interest balance transfer option on credit cards.

I am having a designer come up with three options for interior and exterior combinations that are in the same price point.

Then have an attorney assist in drafting the needed documents & agreements.My personal preference has been to have one person hold title & the other hold a recorded option or lien position depending on their roles & needs. 

That may be a more plausible option, just to have an umbrella policy for now.

If you're a true cap rate focused investor, I don't think either of those areas are going to present appealing options.

You may try engaging a broker who can connect you with multiple options, rather than just checking with one lender. 

Tons of rating factors that impact the price from one property to another.I say this without even considering coverage, service, and what you might want as there are usually choices to be made.Your best bet is to work with an independent agent that can provide advice along with multiple options for every scenario so that you can find the best value in each situation.