What this means is based upon all of the facts and circumstances, but if you buy the new property with the intent to sell it, it may not qualify as held for investment.

The value at this point is not having tenants who have started out with questionable circumstances, i.e. a loud drunken party with a busted front window, damage the property further. 

I would suggest a trust for this specific circumstance and you can make up any negative rents. 

If there is something in their history that is problematic, I try to find out whether it was a one-off circumstance or bad decision, or if it is something that has been systemic. 

I know veterans can hold two VA loans under certain circumstances most primarily being they PCS and can’t sell their home fast enough.

The deductibility of rents between related parties is essentially determined by the facts and circumstances surrounding each case.

@Mike M The HGTV comment was a bit tounge-in-cheek, but I have looked into flipping a bit and I think its be fun under the right circumstances.  

Banks won't usually lend to an LLC under most circumstances. 

But since he had to put in several hours of additional time and effort over and above the norm over the course of many weeks to get the title to a place where it could be considered marketable, I did not consider this to be unreasonable.Without some extenuating outside circumstances like this, I find it difficult to think of a scenario where you should be paying $3,500 in closing costs or over $1,750 in attorney fees, even if this included the title insurance premium on a more expensive property and a couple of 'junk' fees (IE - copy fees, toner charges, courier or carrier pigeon fees, etc).But again, if you'd like a more in depth analysis, you'd need to give us a line item breakdown of each fee.If you'd like a recommendation for another closing attorney in the area that should charge you considerably less, feel free to PM or email me.

Normally this would be a income property that should be sold however under the circumstances your parents may not appreciate that action.