My mortgage is $1001, with another $550/m in trash, electric, salts/chlorine, internet, pest control and lawn.

I am financial controller and would like to put together a quick reference card/dashboard for investing in notes. 

Definitely ask your lender (or several lenders in your area) what your options are, if your parents are up for it they can likely help you qualify for a loan by cosigning.

Refinance into an investment loan, and move out and live with my parents for a few months while I apply for an fha and find a new property.

I think the idea was that, even if he sold some of them off, he would still own a majority of the lot and could control "HOA" decisions, essentially giving him control of the whole lot.I'm really not sure, but it sure sounded interesting!

The Parents are NO involved at all, There is NO Trust , NO will - it will be done directly with Deed on the behalf of the minor GRANDCHILD and  appointed property guardian to manage the property and distribute the rental income to the friend.I am just trying to understand  my options before I talk to a  lawyer and CPA . 

But they will still add to your basis and reduce your future tax bill.The alternative to this is to do a reverse improvement exchange where you make the improvements while the new property is under your control but owned by the QI who takes title to hold it for you. 

Preforeclosures and lease options aren't a good fit, unless you're willing to bring the note current, which nullifies one of the advantages of a lease option, that being controlling properties with minimal cash out of pocket. 

I just cancelled the loans... the flood insurance is just out of control.

Sellers are in control.