I would be concerned about the possibility of them scamming for a future out of court settlement law suit over mold. 

Vacationing here right now and my partners, we own STR in other locations and we are interested in learning about the local laws and STR nuances for the area.

Also, I'm not sure what other assets your parents own and the size of their estate, but there is a major change coming to estate tax laws in 2026, that depending on the size of their estate, gifting may be something to consider while the exemptions are high, which comes with its own sets of pros/cons.  

We don't know what states the properties reside.Florida, Georgia, Hawaii, Illinois, Indiana, Montana, South Dakota, Virginia have different laws.

But each succesive year since the early 2000s have seen numerous rulings around the periphery of this issue, especially with trusts and similar entity law. 

It is just the law.

Here's how to get started and advice on each area:Section 8 Rentals:Education: Learn about the Section 8 program, including eligibility requirements and benefits for landlords.Networking: Connect with local landlords who have experience with Section 8 rentals for practical advice and insights.Property Selection: Look for properties in Raleigh, NC, and surrounding areas that meet Section 8 housing standards and have potential for rental income.BRRR Method (Buy, Rehab, Rent, Refinance):Research: Study the BRRR method to understand how to find undervalued properties, finance renovations, and refinance to pull out equity.Partnerships: Consider partnering with contractors, lenders, and real estate agents experienced in BRRR to streamline the process.Market Analysis: Analyze local market conditions to identify neighborhoods with potential for property value appreciation and rental demand.Airbnb Properties:Regulations: Familiarize yourself with local regulations and zoning laws governing short-term rentals in Raleigh, NC.Property Preparation: Prepare properties to meet Airbnb standards, including furnishing, amenities, and guest experience.Marketing: Develop a marketing strategy to attract Airbnb guests, leveraging platforms like Airbnb and optimizing property listings.Overall Strategy:Continuous Learning: Stay updated with industry trends, attend local real estate meetups, and consider joining real estate investor groups.Financial Management: Manage your LLC, Opal Capital Holdings, effectively to track expenses, income, and tax obligations.Long-Term Goals: Keep your multifamily apartment goal in mind, and progressively scale your real estate portfolio based on experience and market opportunities.If you would like some help getting started, or just want to discuss please feel free to reach out to me directly.

I ran an analysis of a performing note at 12% vs. most rentals and the returns on the note were better than a rental.Note that income from notes is no longer taxed at ordinary income based on new tax law.

I feel stuck in a similar situation, I have $1M in equity in this house that I’m living in and renting the mother in law apt next to it , the problem of course is the 7-8% interest rates , have they not stopped the BRRRR technique in its tracks ?

Now you can check with your local state laws and if you can garnish their wages a lawyer may be of help but a collection agency won't help.