So I changed that part to be single family homes with either an in law suite, ADU, or a large garage I could convert.

If you haven't heard about the NAR Lawsuits and how the DOJ wants buyers to pay their own agents, google it before answering this question b/c we don't need your confused self all up in this thread talking all that bulljive.How do you plan on buying your properties going forward?

I suppose they could be geez they would be opening themselves up to a huge lawsuit that most lenders (big and small) don't have the appetite for because this is a small and immaterial violation.

DO you worry that more lawsuits like this are happening all the time? 

The wish is to have an in law suite, ADU, or portion of the home that can be enclosed and made into an efficiency apartment that can be used for the vacation home.

However, they dont want to be anywhere near the loan or title because they dont want any lawsuit liability from my STR.With my income and credit score, the terms for DSCR loans or conventional investment are not good.They own their primary residence in cash and its value is around 2 million.

However, they are weary of being on the title in the case of a lawsuit for asset protection.Here is my proposition and I would love to know what the BP community thinks.We create a LLC between myself and my parents and the LLC goes on the mortgage and the title of the house.

The second cause, and one that is not used as frequently, is essentially a monetary lawsuit. 

Realtors and builders must be worried that these foreclosed homes which have fallen in value so fast might put them in jeopardy of lawsuits.

I've been though a couple of lawsuits on those issues.