They must have some moderate buffer in those builds to make them some sort of profit. 

I’m currently being put on my parents feed.Now, I want to get a loan to pay off their balance $45k, get a lower interest rate (and yes it would be lower, believe it or not theirs is 9% and has been for years) and pull money out for some debt at this point I only want to pull out $20k.Obviously, there is equity.What’s the best loan for this?

So could he create an LLC then I buy the LLC off of him would that make me the owner. 

DSCR Loans: What Are They And How To Get The Best Termshttps://www.biggerpockets.com/...DSCR Loans: How To Use Pro Strategies To Save More And Make Morehttps://www.biggerpockets.com/...Multifamily DSCR Loans: A New High-Impact Loan Option For Real Estate Investors?

If you don't fall within that category you either get caught up dealing with the BS minutia of the business or are reliant on outside PM's that eat away any margin because there is significantly more time that goes into operating Section 8 rentals and don't let the "guaranteed rent" make you think otherwise.  

Can you make money. 

Good job saving up a lot of money!

What do they have time and money for?

@Miguel Del Mazo MANY investors who get involved in managing other investor's properties make the same mistake you are making - they SEVERELY underestimate the time it takes and UNDERPAY themselves!

Find a centralized place to keep track of information you know about interested parties and can make sure you are moving them forward through the process.Good luck!