But THANK you for you information and hope to continue the conversation.  

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’d love to be a resource for you and assist in any way I can as you continue your investment journey.

So, hopefully that continues. 

Refi the house so they can continue to live in it, they will get the best loans on their primary residence.

How bad is this going to continue to hold back the CRE market?

Instead of selling the home, you could continue to rent it at market prices either to the seller or a new tenant once the initial lease was complete.

If you allow this to continue, they will only get worse over time, and your losses will increase.I suggest you hire an attorney.

Do you have any additional insight on continued self manage from OOS vs PM?

The growing tech sector, infrastructure projects, and diverse job opportunities continue to drive population growth, making Atlanta a promising option for multi-family investments.