It sounds like you are going to be a tire kicker wasting your time and your agents time with unreasonable expectations.

That agent is very smart! 

I've never heard the 25% thing before, but any difference between FMV and sales price would technically be considered a "gift" with potential tax implications for your parents.You can avoid most seller costs as there's no reason to use agents in this case.As an FYI: I always recommend avoiding a FHA loan, if you qualify for a low-down payment conventional loan.

Your agent should have the experience to navigate this.

But I spoke with an agent earlier on a property and he gave me the NOI for last year for Airbnb on it

I see you're a real estate agent, but do you invest in real estate personally as well?

It is important to consult with a real estate agent with knowledge of how panels affect your properties value.

A lot of times it is best if the existing pm is the listing agent so they can negate this along with tenant communications. 

Rent would be ~1,400 to 1,800 / month which is above market rate but housing is in very high demand and price is in line with what seniors who live on their own would be willing to pay based on my conversations with local Real Estate Agents. 

I think option one is better if you want build a lasting relationship with this agent.