With this adjustment of delayed costs the DST distributions are not just slightly, but much higher than my prior NOI and the depreciation expense (and saving) will be higher resulting in additional tax savings.

Here are a few things to consider prior to forming an answer. 

I wonder if they'd give you grief about financing an out of town primary 6-7 months prior to moving back...Good luck!

Also, if your loan was conventional; Fannie Mae recognizes the legitimacy of a QC between the mortgage holders and the LLC so long as the LLC is controlled by the borrowers; If the property was owned prior to closing by a limited liability corporation (LLC) that is majority-owned or controlled by the borrower(s), the time it was held by the LLC may be counted towards meeting the borrower’s six-month ownership requirement.

I would read @Scott Trench's book "Set for Life" to ensure you have a strong financial position prior to investing in real estate.

But, it is written in the lease that all tenants must acquire renters insurance prior to move in.

Doing both could be difficult as @Odie Ayaga was saying, especially without prior experience and systems in place.

These are my most vulnerable tenants.If I do not raise rent on my 2 rent controls I lose it forever as any future increases are built on a percentage of the prior years rent.

Even more importantly construction will unlock depreciation expense to offset the cash flow from rent.You do have to have your QI for the 1031 in place prior to the closing of the sale. 

You will have to provide the lender a signed lease prior to closing to show you will be earning this money.So ultimately it seems like a better situation for your parents to just put the property on the market, take the money and run.