Before I get started, am looking for advice on any pitfalls to consider before I engage in a zoning discussion with Regional Building. 

Should I contribute some capital to have "skin in the game"?

I think that you have a pretty good game plan in order.

The sellers are selling their homes for full market value (no realtor commisions), and enjoying fair market rents from a lease option buyer who's been talking to a mortgage broker from day 1 (and has a little bit of nonrefundable skin in the game).

I have handled a similar scenario through a JV agreement.Your friend can be a "consultant"/contractor you engage, and upon sale of the property he gets paid back $X (which includes his capital and profit%) and you 1099 him.Consult with your CPA.

So play the numbers game and keep going until you find someone that needs your help to get rid of their property.  

I am in the early stages of evaluating multiple properties, so a little too early to be engaging an insurance broker for every property I want to evaluate.I am looking for a solid number to be able to plug into the handy-dandy BP Rental Property Calculator.If it helps, I'm looking at properties in Des Moines, Iowa (IA), but am still open to what you're seeing in other states.Any help/insight would be greatly appreciated.Thank you!!

Hello again everyone, I am still new at the real estate investing game and have a passion for real estate.

@Cody Barrett is the seller open at all to seller financing, or is he pining to get out of the game?

Just wondering when is a good time to start engaging the services of an accountant, lawyer, broker etc?