In return, the lender would receive monthly cash flow and a share of the profits upon sale.

I'm actually in the process of doing a cash out refi for this property with a few more properties I own into a portfolio loan.

If you buy distressed, leverage your cash against hard money and put 10-15% down and rehab the property.

But, many times the children do not want their parents' name dragged through the mud of foreclosure lawsuits or foreclosure notices, and are also fearful that it might affect their inheritance in any other assets, such as cash or other real estate. 

I currently have around 200k in cash that is yielding 5 percent in my brokerage account.

It has been 100% occupied and currently returns a positive cash flow of $1,000.

I effectively got it for free and was able to make some renovations as well, now this property cash flows and has great tenants.

Cash deal, using a wholesaler.

Maybe 1-2 hour class, so check with your local authority who runs the sale to see if they offer a class.Last thing to remember it is pretty much a cash business. 

So if you have $250k in equity, I would be using $50k total max and buy something small that has appreciation potential and cash flow.