At that class of property, the turn overs are costly. 

•If your real estate broker’s license allows you to handle evictions, advertising low-cost eviction services can be one of the best lead generators.

First thing I notice is the big jump in ARV from the Total Project Costs.

Debt service is way up, revenue is generally down, down payments are way up, financing terms and costs are much worse.The time of fast scaling has passed, unless you're very creative. 

Those costs are a lot higher than you might expect.

You may run into issues with re-tenanting and it may take longer than you expect or cost more.  

It's great for cashflow and our entry level costs are lower than a lot of other markets.

However, this has to be the primary residence of everyone on title in order to qualify and even if that were all true, we're still only up to $1M that way.I agree with the other commenters, the parents should continue to own it and live in it as their primary, leave it to the daughter when they pass, and she inherits it at the stepped up cost basis. 

I do understand all recent syndications are struggling with costs and tenants struggling to pay, so trying to be patient for now.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.