I run a private credit fund - I need to pick their brain on how they can give investors 12-13% and make money.

Ask your PM how to come up with some strategic incentives...possibly listing high and reducing every 7-10 days until it's rented, offer a move in special, a gift card, future rent credit, etc. 4.

You are right, when the inspector mentioned the possibility or prior water damage is when you should of had that basement inspected by a contractor/professional and not listen to your agent.Gregg is right, the sellers were aware of some of the damage which is why they gave you a 5K credit. 

With regard to my parents, I want a good relationship with them so they can build my credit history.

do not use a line of credit for a down payment. 

I'm never in favor of government over stepping, but I can also see how desperate individuals can be taken advantage of during this tragedy. 

There are other areas that make good STR's that are overlooked by most in favor of the trendy areas. 

I am simply trying to offer a solution that is fair to both parties that allows the property to stay in the family.The biggest problem is they are having trouble refinancing the property due to credit balances.

The other part of this is that in addition to this, we are borrowing from our home equity line of credit to put down the 20% deposit- so we have that payment too.   

I would stay away from section 8, pull credit and background, and call referrals, and look at pay stubs for everyone who applies.