As you pointed out, even in commercial real estate where it rightfully belongs cap rate is overrated.

Their title insurance does not protect you if there is an issue and a deed has been filed transferring to you in many cases, so check that out.Your parents CPA may want to bless or advise you of another way to handle. 

There are so many different parts that they have to handle so organization is very important.

However, based on the fact that their kids are in a school where they are happy, the low inventory of houses in our area, and the fact that many landlords don't allow pets, leads me to think they will be long-term tenants, which is what I'm looking for.  

I can handle renting request but what about if something wrong with the Internet or any specific question that needs someone to show up quickly.

@Cassidy Burns  As others mentioned, and my CPA has stated to me in the past, as a single member LLC, there's is no impact on how it's handled for tax purposes. 

How to handle such tenant?

@Charlie Moore The issue I have with dealing directly with sellers is that most of them don’t know how to handle a deal, and/or are not knowledgeable on how to execute a property sales transaction.

I'm trying to find a great property manager to handle a 7-unit apartment in Apple Valley, California.  

Theoretically, if the servicer handles both the loan transfer and deed transfer, there would certainly be a legal fee and recording free to change the deed/title with the county.Pleasantly surprising, when I asked my servicers about LLC transfers, they all knew what I was talking about.