@Joshua Perelli so only a crazy person would accept being a LAIC for an owner self managing. 

There are 7 material participation tests and these are the 3 most common for real estate investors AND you need to meet one of them: Spend more than 500 hours on your rental businessDo substantially everything for the rental businessSpend more than 100 hours on the activity and no one other individual spends more time than you doAnother way to offset non-passive income (e.g.

Also, if you accepted full October rent, its unlikely you can claim they need to leave before the end of the month. 

Now, don’t get me wrong—I did accept the inspection report and signed the offer to purchase.

You just filled in and registered to the country clerk.Title companies won't accept to transfer the property without using a warranty deed, because they can't insure the title, but that will come when your parents sell the property and at that moment your parents will create a warranty deed to the new owners.

The benefit of going conventional is being able to purchase an MFH without the stringent property guidelines, self sufficiency test, and longer escrow on an FHA loan. 

So good to know there is another option for those that want to test the waters before jumping in.

You'll either need to put more money down, or accept the reality that high leverage creates a higher debt service payment.

I’m not sure if I should accept the offer and roll my equity in a new property or just sit tight and see what happens?

It seems like you’re positioning yourself perfectly for that with the 50% rule, 750-hour test, and material participation.When it comes to underwriting multifamily deals, just keep in mind that depreciation is not considered part of operating expenses, but mortgage interest is.