I would like to lay out a scenario, and see you guys flex your BP muscles and show me the way. 

Your wife and sister in law need to decide who will quarterback the transition team (family,lawyers,doctors,property managers,accounting,funeral arrangements,etc).Whomever is the emotionally strongest and most well organized person should be taking the lead in all legal decisions when their father is unable to in the future.After he passes there is going to be a ton of work to do so get good professionals to help you.Your going to need to evaluate the current situation of the rental properties and the quality of the property management and tenants.Is your father in law using an LLC (limited liability corporation) to run his rental business and to protect his assets?

Thank goodness haven't had to use it so just keeping our fingers crossed that it works like it says it does :-) if we were to need it. 

You said the home is free and clear so that mean you are going to need to bring a big chunk of money to the table for owner finance because they can sell for cash verse taking a chance on someone to make payments. 

A wholesale property generally is going to need work and as others have pointed out, conventional lenders won't lend on a fixer.

You're going to need to find trustworthy people and establish a working relationship with them.

You're really going to need 20% down to cashflow like you want - but be careful to still calculate your ROI - generally leaving more money in the property is not good in ROI terms.

Thanks.I would not worry about an LLC now, especially if you plan to mortgage it - lenders dont usually like lending to an LLC and you likely wont have enough equity built up to need to worry about asset protection at this stage. 

I like people who say "That's a new one, let me see what I can come up with" or "Let me make a few calls" as opposed to the worried tone and the frowning and the "This could really cost you".

I called Rich Dad Education, they allow me to transfer my spot for another course to anyone, I just to need to sign a release form.