Not sure what the interior will look like, but hopefully you have photos of prior to occupancy, so that you will be able to claim against their security deposit, and a judgement for past due rents and any damages

Like the others said, I don't see how VRBO would even know you had a direct booking, or what would make them think they're privy to commission on a booking they didn't secure.

And some of us been replying back yes there is, just where they are, how to get them, has changed a bit and it's no longer as simple as closing your eyes and randomly throwing darts at a MLS map and buying whatever. yes, those days are long gone but if your willing to roll-up the sleeves and get professional at it, there is "deals" all over the place, you just gotta get skilled on how to find them, tap them, monetize them. 

I’m moved to have secured my first deal!

You would choose the tenant so you would have a decent amount of security on who is living there.

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).

Option Fee, Security Deposit, etc) can you do it with no money out of pocket?

There’s no specific IRS rule against refinancing a cash purchase and deducting the interest, as long as the property is used for investment purposes and the loan is secured by it.

It's ridiculous what #'s the county throws out there for tax appraisals some times.

Your conservative approach to estimating income provides a solid buffer, and the strategic location adds a layer of security.