That is the main reason.. so they can low ball and make large spreads .. or withhold facts on the house and get their assignment fee and move on without much risk.

Moving there initially since low down then ideally want to rent some rooms to cover mortgage!

Blue Gate Capital strung me along until very close to closing and almost cost me the deal.

Vacancy hurts a bit more, but the biggest issue with renting out large homes is turnover cost.

Some of the materials we choose and asked him to pick up (such as flooring) he replaced with low quality materials, I assume to keep more of our money for himself. 

Most DSCR programs will want you to have owned the property for more than 6 months to allow you to use appraised value instead of cost.

However, this has to be the primary residence of everyone on title in order to qualify and even if that were all true, we're still only up to $1M that way.I agree with the other commenters, the parents should continue to own it and live in it as their primary, leave it to the daughter when they pass, and she inherits it at the stepped up cost basis. 

Personally I like keeping my properties that I know are successful and have low maintenance.

Can you give a cost breakdown?  

Though, that would probably be a similar cost to the above ground pool.