The first deal is always a great learning experience and you will learn how to navigate the issues that may arise!

That said, modular obviously goes in a LOT faster, and you don't have issues with stuff getting wet, sitting out, etc.

He is willing to sell because he has an issue he needs to resolve.

The issue with wholesaling with a license is taking a wholesale fee outside of the brokerage, which you can not do and would cause you to lose your license.Marketing to get in doors with a license and the ability to buy is fine, but the second you assign a deal to someone and take the spread and the brokerage does not get a cut, you are in jeopardy.You are convoluting marketing as an investor and wholesaling while backpatting yourself multiple times in both posts.

The issue is at initial purchase.

Taxpayer Advocate Services are a taxpayer funded group that are supposed to be the "watchdog" that helps taxpayers deal with these types of issues with the IRS. 

Doing it this way will allow me to qualify for one of my other rental properties and assume the mortgage at the existing 3% (DTI issue) 

You need to drop the issue with your parents before you damage that relationship.

Does anyone see any legal or accounting issues with this plan?  

Side Note: Up front capital from my side is not an issue for down payments, and leaning towards the fix and flip strategy to build some cash and roll into a 1031 to ultimately get into the multi family space.