This scenario is the mostly even benefit scenario as the tenant leveraged their increased rent to make the purchase. 

As of late, I have became interested in real estate and purchasing the home for the need of a tax shelter and increase my networth.My parent's house at the moment is valued at $500,000.

You'll have very quickly increased your net by 45K against 10K start...it's just not very liquid is it.I'll stop there because I just looked at page 2, now your property value estimates are VERY NICE.

You will lose money one way or another on those appliances I can assure you so you need to have the tenant paying extra in the form of coin operated machines or increased rent

Because we do it this way, we can sell the properties for a little over market value, we don’t have to pay realtor fees, we don’t have to pay concessions, and the tenant pays down our mortgage for a few years which increases the margin, and then we cash out.

If they do not qualify based on how they apply I will discuss if they want to make any adjustments like adding someone as a tenant to increase income to qualify.

Due to their level of combined income and no past issues with rent payments, I made an exception on the credit and increased the deposit.

It'll increase your credibility in their eyes. 

In this case it should be indicated that market is increasing and justify the price.

Funny enough I've seen his deals then come through here on the BP marketplace for another 10 - 15k increase from another individual #breakwholesalechain  How do other rehabbers overcome this?