I'm also not sure how including utilities in the rent and expenses affects the purchase price.

They supported me (financially) up to and including college and have supported me (emotionally) my whole life.   

So I’d make sure the demand letter doesn’t include them.  

I'm thinking about a family syndication that would allow the parents (my parents and their siblings) help secure homes for their children (me and my siblings/cousins) while giving the parents an investment return.My thought is, someone like me or my cousins do not have the capital built up to get a loan from a bank that does not include PMI so offering the "syndicate LLC" a higher return on investment for a short period of time while allowing the child better leverage to grab a house with the cash that the syndicate provides. 

He also said we could rent the basement of the property but due to local laws we are not allowed and he also inflated the cashflow to $2,000$ a month (based on basement rental included).

You did not include Vacancy in your analysis.  10% for Vacancy ($260) will wipe out your cash flow.  

The language can easily be included in your lease and must be in at least 8 pt font.

Hi Karelyn,  A few suggestions:  First, your agent can talk with the seller’s agent to see if there are any items that are important to the seller so that you can include them in your offer.  

Everyone I’ve spoken to about this including other investors and real estate agents think this is insane.

Lots of results come up, including "Kick 'Em Out Quick".Unfortunately you can't come to BP and expect people to give you step-by-step instructions on how to evict properly.