I know there have been the new regulations implemented this year, but is it a general rule that you (as an investor) need to have 30% down?

Mortgage Brokers were just handed a whole new batch of regulations through Fannie Mae, effective Jan. 1 (It's become more strict/difficult to get loans in some cases).FHA just scaled back their loan limits.

If you were to hire a property management company to handle both the properties and turn the whole thing over to them, they would get the rents up to par as quickly as possible without you first having to sort through two states' worth of regulations and second having to convince mom and dad to take your sage advice.The issue with the Florida tenant's rent payments might be your angle in pushing property management.

Your profession means you are sitting on a huge supply of private money.

(B)That the Tenant/Buyer will not use the property for any unlawful purposes; and that the Tenant/Buyer will conform to and obey all laws, ordinances, rules, regulations, requirements and orders of all Federal, State, and local government authorities, agencies, departments, bureaus, boards or officials, respecting the use of the property.

They might have certain regulations. 

LOCATION, LOCATION, LOCATION is what drives demand, and llimited supply creates rising prices.

Okay late night update:Numbers still workGot the HVAC cost way downGot the Roofing cost way downgot the potential framing numbers inline found several supply houses to get products interior products at a reduced costFound enough 1" hex tiles at Habitat for Humanity to do one of the bathroom floors for a 85% discount!

Is he is looking to just supply capital and see a guaranteed % return after a certain time period?  

From what I've read (I forgot where so correct me if I am wrong) with the regulations required by the SEC for crowd funding it costs $30,000 for every $100,000 raised in reporting requirement costs/costs to meet SEC regulations.