However, for my budget there is not many options available.

@David Pittman- contact some local lenders and forge a realtionship with them as  preferred lenders ..this would allow you some  controal and  have some decent options for your buyers 

Alternative income options are available but will reduce the maximum loan to value. 

I've been using freetaxusa and turbotax and neither software has the option on t he Schedule to file it in a way that enacts the STR Loophole and allows the loss to be offset against my W2 income. 

Any other options to get this deal closed?

Hello, Mark Svendsen, based on the information provided, here’s my analysis and some considerations regarding the trustee's decision and your options:1. 

In our previous example of $4k net monthly income the disbursement would be as follows: $4,000 Net income$1388 principal loan repayment to majority partner $1305 (50% of $2612) to majority partner$652 (25% of $1305) to each minority partnerAs your parents, they might not require or care about the same rate of return, or a return at all (except the equity position) especially if they're planning on utilizing the property for personal time.

However, you could convert an IRA you inherited into "self-directed inherited IRA" which would open up unlimited investment options, but you must still follow same distribution rules. 

I believe you are confusing the option to operate as a disregarded the entity, which has nothing to do with asset protection.

Your options will be better.