A concern, however, if we do a sale, is with the price, as I understand that if I sell at too low a price (say, $200K, give or take a few thousand to pay off my current mortgage), the IRS could assess a tax on my parents if the price is more than 25% below market value. 

Concerns: Although the cashflow is good, we weren't sure it's valuation and potential for appreciation since there is no good comp like this property in the area.

Thanks, and that is what I’m so concerned about, is issuing 1099’s (either myself or CPA) in error and really causing a mess for the person receiving them.

I’m mainly concerned about the rate change happening without prior notice, especially since both loans started and are closing on the same day.I’m scheduled to sign tomorrow and close on Friday.

@Anthony Dupre Why are you so concerned with anonymity?

In desperation, I even visited their office in person, only to have my concerns dismissed and another empty message taken.

Depending on where it is, your biggest concern should be will the new furnace, AC and hot water tank will still be there after you close.

(I have a special needs trust for my son so have dealt with the complexities.)My bigger concern would not be your liability exposure but doing something that could potentially endanger the support benefits your brother is entitled to.

My concern is that I might be over leveraging myself if I try pull out a 20% down payment for a DSCR loan.

I see the concern though...