You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property.

If you do, keep the balance low and take advantage of the zero interest balance transfer option on credit cards.

I was starting to look at this as an option.

I inherited a house and am currently exploring options to use it to get money to consolidate some of our debt and potentially have money for a multifamily.

If you have 80k cash, you should have many options to invest using rental financing.

Is there another option that the kids should consider?

Then have an attorney assist in drafting the needed documents & agreements.My personal preference has been to have one person hold title & the other hold a recorded option or lien position depending on their roles & needs. 

Has anyone heard of this program OR know of a better method for learning about this and getting involved?

If you're a true cap rate focused investor, I don't think either of those areas are going to present appealing options.

That may be a more plausible option, just to have an umbrella policy for now.