My wife’s about to graduate and has accepted a job as a teacher, which is something she does want to do.

FHA), that would enable you to put as low as 3.5% down on a multi-family property, as long as you were living in one of the units. 

Other local banks to South Bend are 1st Source, Notre Dame Federal Credit Union, Teachers Credit Union, AAA Credit Union. 

All to have a substantial cash flow Looking for any advice for first time start ups, hard money lenders, private lenders, partners, MENTORS, teachers.

If you are just starting off and are somewhat new you might want to consider "strong business credit" this will enable you to build your businesses credit to attract more traditional lenders.

There are many great teachers/trainers out there that have inexpensive courses.Brian Haskins

I live in Orange County CA and after toying with multiple ideas about how best to invest my money I believe I have settled on the idea of attempting to acquire rental property with positive cash flow (probably out of the state of California to get more value)I am a elementary school teacher by trade and I am new to the real estate investment business so I hope that my involvement in the BP community will help to guide and direct me as a newbie looking to start my real estate investing career. 

As  @Ned Carey so eloquently stated, your grandparents are not helping the tenant, they're enabling the tenant. 

Another item is confirmation from the first position lender they will allow registration of a subordinate lien/mortgage {with many residential bank mortgages here, registering a second, especially w/o their consent, could enable them to call the first}.

You recall, he was a scammer and posed as a music teacher not knowing anything about giving instruction.