They've held the property for a couple decades, and would likely have a significant capital gains tax liability if they were to sell it on the open market. 

There are those of us that provide one on one, personal, individualized hand held training to make sure you actually buy properties, avoid trouble and teach you the processes, for about 60% of that fee.

Lots of misinformation in this thread, so what's new....Conventional loans are secondary market loans, 80% LTV without PMI, you won't get PMI on a fixer based on an appraisal.Portfolio loans are held by lenders, they may use conventional underwriting but may vary and can finance fixers.The rule is: The LTV is based on the purchase price or appraised value, whichever is less.There is no ARV in conventional loans.Multi family is 5+ units, SFR is 1-4, (Jerry meant to type 2-4 @ 25% I'll bet, not 1-4 as 1 is a single family detached dwelling that can be at 95% owner occupied conventionally).  

There is no historical reason why this can't happen, despite the hammering on by certain folks about how 2024 is an election year, and how the US Federal Debt can't handle interest rates being held this high.

But now you have holding costs and you have to get a contractor and front him money to start cause rehab money is held in escrow for completed work only.

As Bob noted, a fiduciary duty is required at a firm level for RIAs, meaning even those without a designation are held to the fiduciary status.CFP is the most well-known designation in the space (because it's the oldest and markets the most, honestly).  

You protect on the liability side, but you lose on the transaction flexibility and cost associated with lending on property held in LLCs 

I would also require the tenant to have the parents sign a liability waiver that also adds you on there as well stating that if the child is doing something that could harm themselves, that you are not held liable.

We held for a year and rented but then sold it. 

My 18k deposit is being held up with the auction attorney...