I suppose legally you could, if you fully disclosed the non arms length nature but, no lender in business, or wanting to stay in business would do it.At the end of the day, what you want, while it may make sense to you and your parents, just isn't a scenario that happens.  

It's monopolistic in nature especially when it comes to transaction involving a commission.

You also have to be with an agent who fully understands the nature of zoning and regulations.

Many people forget about that when they furnish a place and do not carry adequate coverage.

So, this serves my goal to grow & diversify my portfolio while earning great tax benefits.4) I am in a strong financial position where I could qualify to buy multiple and have adequate reserves to maintain the properties long term and cover any potential negative cash flow during the time I own them.

But, life seems to go on for them...On a slightly different note, I think the nature of your investments may dictate how you structure yourself. 

Cedar offers natural resistance to rot and pests with a great look that can enhance property value, but at a significantly higher cost and it requires regular maintenance to retain its appearance.

A similar situation would be like when New Orleans flooded and people were displaced in mass , or another natural disaster .

Trying to figure out if this is natural settling or we should provide reinforcement to the beam to prevent further settling. 

Certain lenders could impose limitations or demand that you settle the current mortgage prior to executing this kind of transfer.Make sure your property is adequately covered by insurance.