Memphis is not a small city by any stretch and the major job supplying industries are not subject to the up and down nature of a fluctuating economy.  

I can do 5 "Subject To's" in 5 months and make $100,000 without contractors, zoning, delays, carrying costs, banks , weather delays, decisions on paint colors, decisions on tile for the upstairs spare bathroom, etc, etc, etc.

Here is the language straight from the ISO form CG-00 10We will not pay on a replacement cost basis for any loss or damage: (1) Until the lost or damaged property is actually repaired or replaced; and (2) Unless the repairs or replacement are made as soon as reasonably possible after the loss or damage.We will not pay more for loss or dam- age on a replacement cost basis than the least of (1), (2) or (3), subject to f. below: (1) The Limit of Insurance applicable to the lost or damaged property; (2) The cost to replace the lost or damaged property with other property: (a) Of comparable material and quality; and (b) Used for the same purpose; or (3) The amount actually spent that is necessary to repair or replace the lost or damaged propertyIf the insurance company will not pay until construction is finished and will not pay more than the actual amount spent there is no conceivable way to make money from getting a lower bid when you have replacement cost coverage.

Can someone share thoughts on this subject? 

You are not approaching the right communities and perhaps not approaching them correctly.Read some of the older threads here on BP on these subjects.

This could be higher than the current property taxes that your parents pay.Option #2 - You get added to title via QCD - quit claim deed, you wait 6 months (min required time by fannie mae for conventional cash out) , and you cash out up to 75-80% LTV max as a primary residence or as high as you feel comfortable to obtain the capital you're looking to utilize to invest with or you do a line of credit like a HELOC (home equity line of credit).The Pro's of this is that the home will not get reassessed for CA property taxes since your parents have not sold the property.You may have to account for this gift via quit claim deed - QCD but as long as your parents plan to be within the 5.49M of assets in 2017 (subject to change in the future) or annual 14k per year they should be fine (seek a tax pro).The other downside is you may not get "stepped up basis," for capital gains purposes for the whole property if they add you to title during their lifetimes (you own the property 50/50 with your parents). 

You can get the same answer just growing 1000 @ 8% for 5 years [1000 * (1 + (8%/12)^60)].The reason it's not equal to the 1,216.58 total payments is because a portion of this 1,216.58 is paid at an earlier point than your FV point (5 years in the future) and thus those payments are subject to Time Value of Money.  

"Refinance to drop lender-paid PMI" is subject to future-current rates, which may be higher. 

Maybe take a credit line against the 3 family after you purchase it or however you'd like to do that (maybe a subject 2 transaction would be worth your while or just try to take his name off that same mortgage and insert your own) and use those funds to purchase another property and flip off that line with some hard money as well.

As the subject says, I am IN!