But fixing this yourself would be fairly easy.

Why should tenants pay to cover the cost of you maintaining your property.

He isn't maintaining your property, got warned tondo something about it, ignored it, and this is what happens.

Fair warning here - typically, you will get young professionals as roommates in this situation, but the numbers typically do work better than the multifamily properties. 

Just curious as I have started to make a name for myself on my inner circle and are now starting to get people coming to me who are willing to put up their money with me as they see I am doing fairly well.

Once you do this a few times, you get fairly accurate.

Path forward might to be to handcuff your parents to ONLY properties that will cashflow as a rental, and have them pay fair market rent.

I’m fairly new to RE, but it makes more sense to me that you’d keep using cash flow to pay the mortgage and start banking as much free cash as you can so that when the market cycles down, you can buy more properties :) if you are so inclined.

@Rick LawsonI think your repairs and maintained are pretty high. 5% of purchase price is really up there.

So, the bank assumedly "bought" the property at a "real" auction because (1) it wasn't happy wtih the bid amount, or (2) it wanted to pursue the owners for the negative equity, and needed the property to sell at the fair market value.That makes me think it is clear this is the primary lien.