In my opinion Option 1 could be a bit risky in today's environment as we are not sure if prices have hit the bottom yet, there are positive signs in the CoS market that point to price appreciation in the future, but there is a good chance the interest rates are not coming down for a while, which will have a negative impact on home values. 

Do you have a good relationship with your parents and are you comfortable collecting rent from them, addressing maintenance requests for them and things like that? 

I’m still less than 50% leveraged so I feel comfortable if the economy crashes and I have to reduce rent or have a lot of vacancies.

If it were one of my tenants I would put in enough window units to keep the house comfortable.

If you are comfortable with that then you can always hold it for the long term. 

I'm still comfortable with LTR, MTR, and STR here in CO

We had dinner, where I got all the info to feel comfortable to start investing in other markets.

People have to really put in the extra work for their clients right now in a low inventory environment.  

Right now, the system tends to create an environment where even lousy agents generally can't screw things up.

Cheap fix and makes the house so much more comfy year round -> lower turn over rate, and an average turn over costs us about 5k, so well worth to invest in your tenant's comfort.