In my area the number of properties on the market continues to be very small and prices remain elevated and I wonder if this could be a contributing factor.  

After some research on my own I found out my parents are very below market rent.

You have to know the market and ARV.

You can add them but If you just go with what is active on furnished finder you will be right in the market range for the monthly rent and should cover the utilities + some.

Years ago I bought houses for $25k in my market.

Quote from @Brandon Croucier: That’s a killer loan if they are actually offering that.Seems extremely below market value as even primary mortgages are higher than this right now.I would beware of a bait & switch on this. 

If rates drop, more buyers will come to the market and you can refinance to lower your monthly payment.

Therefore, working with a single real estate agent doesn't make much sense as it will limit you to his/her very limited inventory and he/she might have as main objective to sell a property to you take advantage of your lack of knowledge of the market.

Currently you have a STR lease and can effectively move anywhere the job market takes you.

If I gave my number and got it accepted I'd still be nervous, but I'd definitely pull the trigger on the deal.I feel I'm being reasonably cautious without having any recent comps and because the one house in the neighborhood currently on the market is about $15k below his estimated ARV despite being slightly larger.