My numbers started to indicate that my equity in the rental property had grown way too quickly and was growing unbounded after my 30 year mortgage had ended..

It might sound silly but ask for grades every semester for the first year, it should give you a good indication how they're doing.  

He could benefit from not worrying about unloading a property he doesn't want, gets all the money he's asking for (eventually), and I get the cash flow with minimal expense to get in the deal.With respect to offering my co-worker more, I'm only considering it if it appraises for more.  

. : )I have friends that simply invest in sponsor deals and look at a spreadsheet once each month.There are tasks they have to do relative to watching over their investments but they are very minimal  in nature and easily scale able. 

It seems that every flipper entering the market  wants to start out at the lowest point to help minimize their risk.

My goal is to pay as minimal as I can for a down payment (and little or nothing for rehab/holding costs) on a rental.

This allows for you to easily replace a contractor with minimal loss, should any unresolvable issues arise.2) Write a 48 hour fix and repair clause into your contract.

Most don't seem to factor yard care in, and most of my competitors don't indicate in their ads if yard care is included in the rent price (I do).

I'm open to flipping as well, though my husband hasn't indicated that he'd prefer that.

In your scenario, (check @Jerry Padilla's link to confirm) if the goal is to minimize down payment, FHA might be the better route.