There are some differences for sure but I don't think they are substantial.3) What laws should I watch out for (for example am I allowed to have the water/electricity be under the tenant's name) - You can put all utilities in the tenant's name, but I would advise keeping water in your name since that utility is a lien on the house itself.

I am specifically thinking in terms of a partnership and/or private money lending situation, but am interested to hear any experience whatsoever!

Any suggestions/advise will be greatly appreciated!

I often see these forums flooded with people asking questions that they really don't need to ask, as their questions are very much personalized to their specific situation.I will try my best to keep this as short and concise as possible for simplicity and not waste you all's time. 

One of my friends has just pooled 2M in funding for fix and flips specifically for phoenix arizona to cover full deal acquisition.

Once everyone is clear on the big picture of what the estate plan is and what your parents want, other issues dealing with specific properties and specific issues such as 1031s, shifting to other investments, financing issues, etc. will become clearer.

Are there any specific regions or neighborhoods where you're experiencing favorable rent rates relative to property acquisition costs?

I would advise that you start small 2-4 units and once you have a solid team then move into the commercial space. 

I just came to the table for some open advise.

I suspect you will have other answers that are a variant of specific information and tips.One that is a little different that I'll toss out there: find someone that has done this before, that also has $250k+, that wants to be a mentor, and see if they will go in together with you.