For larger jobs, in quarterly draws.

STRs require more hands-on management, but it’s a viable option for reducing your taxable income without needing REPS.You might also consider a cost segregation study to accelerate depreciation on the rental, creating larger upfront paper losses.

Cons are the liquidity event that your parents will have to do to purchase the home (I assume the funds are in some sort of investment today so there's likely some tax ramifications on cashing those securities).

And I suspect the other larger players in CA had the same arrangements we did. 

Are you looking to increase cash flow with every sale and purchase or keep building equity to buy a larger property down the road?

A minor hurdle for some, but a larger issue to some as well.With DSCR or private money lending, yes, you can still also vest in your individual names, but you will find many lenders will NOT allow it or will actually charge you higher rates to do so. 

I accepted the family with a larger security deposit. 

Feel free to inquire about their staff qualifications if it's a larger organization.2.

Or even purchase something larger such as multi-family or commercial that provides better cash flow. 

Lenders are really dependent upon larger funds to fund them.