if your scared of debt you should just by index funds .

You can't really cap occupants of a home, you can charge additional funds, for usage, wear/tear, insurance, etc.

Funds from your exchange account are combined with hard money to complete the purchase and improvement of the new property. 

I’ve been playing with buying my first Home and useing the equity to help fund my first cash flow property.

This would normally be taxable but since she qualifies for the sec 121 exemption it comes to her tax free and she reinvests the other $2.5 mil into passive long term 1031 compliant investments and that is her retirement fund.  

Obviously a beginner....trying to find out ways to fund my first flip project.

There are some programs which are offer by some banks which goes up to 100% ltv  on PR but rates will be higher and sometime beat the down payment assistance program. 

Their plan is to move out now and repay the missing funds after they receive a settlement from a slip-and-fall they had after the HOA didn't properly maintain the parking lot which turned into an ice rink last January.I'm trying not to gouge anyone going through a REALLY rough time, but what is the process for collecting the back rent from Mom & Dad and/or The Daughter?

Others don't care as long as their first position is 75% LTV or less. 

Better off using a 5% ARM or conv and then hope to drop PMI early with appreciation and if not at 80% LTV automatically.