My recommendation to serious real estate investors is buy an opportunity in any segment, do the math (it's all about the ROI; some investors fall for the 'commercial' is more prestigious chest thump to find that losing money isn't very prestigious at all), and plan on proactively running a business. 

Can anyone recommend hard money lenders who specialize in working with first-time investors?

If you're considering HomeRoom I recommend you just reach out and have a call with them to see if it meets your needs.

I’d love to connect and am very interested in hearing about your agent recommendation.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

The calculation involves:Selling Price: $1,075,000Original Purchase Price: $355,000Depreciation Recapture: $105,300 (taxed at 25%)Capital Gains: Sale price minus original cost, minus depreciation, minus selling costs (~15-20% federal capital gains rate for their income bracket).State Taxes: Since the property is in California, state capital gains taxes will also apply.Given the multiple layers, I’d highly recommend your parents work with both a CPA experienced in real estate and a qualified intermediary for the 1031 if they choose that route.If you need recommendations for professionals in Illinois or California, feel free to ask!

@Felicia JenkinsI recommend going with a long term rental.

FYI, we were able to get a 5.5% rate from their recommended lender with 20% down.  

Quote from @Brandon Croucier: Hi Kathy, at the end of the day the mortgage industry is so vast & wide it's essentially like trying to navigate the Sahara Desert.I highly recommend working with an experienced mortgage broker who knows the ins and outs of the industry to place you into the most competitive product for you.More times than not, people save money working with a small shop broker.Kathy,I wanted to revisit this to offer a a tad bit more and Brandon above is correct.

Start by asking for recommendations from local real estate groups, Facebook community pages, or other landlords in the area—they’re often the best source.What do you think about getting a good referral from a good property manager?