Honestly, I'd keep it at a basic level.  

@Michaelmy apologies some times it takes me a little bit to answereasiest way to explain formula for youArv is After Repair Value meaning after full renovation or repairs this is what the house will sell for 30-60 days max based on comparable sales (aka comps)I prefer lower 60% of the ARV, because I prefer to flip to a retailer, by wholesaling, and earning a small fee for finding the deal and securing the property via purchase agreement option or a few other various formsmost of my ppl buy at 65% or 70% so due to my preferred method of wholesaling, I must buy at prices below these "strike prices" or buy prices...just so you know I am a contractor, so my repair costs are known when I look at property.

Your family will never manage it the way you would want, certainly not with your level of concern, care and urgency.  

it seems as if option #1 allows you to quickly scale with less money (basically furniture and a security deposit) but has the downside of lower margins since you're not building equity.I've also thought of other ideas such as buying a few properties under a llc with several other investors, where the total cash per person would be the same as if you bought 1 property by yourself but it's diversified across different markets and reduced risk.

The cost of living is lower.

So all of a sudden you have a decline in collected rents, your cash-flow sails out the window, you're paying 18% on credit card debt, and with lower equity you literally can't afford to sell the property because you can't afford the debt payoff and the realtor commission, closing costs, etc.  

Javier, I would say the 70% Rule is mostly used in areas with lower property values.

An option must be for a stated period of time, try 99 years, lol.The issue isn't at the state level, it's federal and with the IRS, as well as CFPB then financing if you apply payments to any purchase price. 

Prices are lower and towns can be easier to work with. 

Option one is to purchase the home with non paying tenant remaining after COE for a lower price.