Are they given a JV-co-GP position for fundraising or will they be involved in the management of the property?

In the case of GEG, we let our members know we did not have a track record with them - they were new to us and just being tested - and therefore it was even more important to perform thorough due diligence since we can't be involved in the transaction. 

I suspect the person who originally turned it into a fiveplex only applied for permits to make a fourplex and then did the 5th unit fly by night (perhaps at a later date) in order so the property would still be considered residential and allow for better financing possibilities.

They still look at you and anyone else applying for the loan.

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

Since your parents seem open to your involvement, I would start start small. 

In the case of my 16 unit there were no realtors involved.

I would get the new tenant to apply and process it per your criteria.  

We are experienced and have never involved anyone in our projects and have never used a loan outside of a conventional mortgage.

Looking to see if anyone has a basic template of an operating agreement for a business partnership of two parties involved in the fix and flipping business?