This could be a lucrative STR location that we are very familiar with and feel comfortable with the location close to our homes.

I wouldn't be comfortable telling them they can qualify with this uncertainty.I would tell them they need to speak with a broker to determine their eligibility for future loans.

Although you can get those wrapped into the loan by making an offer with seller closing credit. 6 months of reserves is a very comfortable cushion to have.

So determining what your minimum comfort level would be as far living is, and what your goals are for income while you occupy the house hack will be the most important knowledge for your team.

with over $5m it does not have to be invested optimally to be enough for your parents to live comfortably.  

I felt comfortable signing; I had done good due diligence on the agent.A few days later we go to his office to discuss price and other selling details.  

Also, there's no evidence that the issue was properly permitted/remediated so I will have to do more work to get comfortable.

I've done 10-12 other syndications and am comfortable with the process but am wondering if anyone has any sponsors they would recommend.  

I currently represent Steadily and feel very comfortable using their products with our clients. 

If people need absolutes to feel comfortable to invest with a sponsor or syndicator, fund, whatever then they need to not invest at all.