While fixing the issue is the best scenario obviously, if you could find an underwriter to insure once, they would be inclined to insure again as the exposure is already there. 

You should consult your tax advisor for the specifics.I'd be more inclined to figure out why your parents are financially strapped and how that can be remedied in a more streamlined manner than what you're proposing.Infusing them with a lot of cash may or may not fix the issue in the long-run.

The reason they are successful is because they are set up to do all the heavy lifting...offering WAY more value to the investor than what they can do on their own...especially from a distance.If you have the time, money, freedom to fly back and forth, and inclination to do all of this yourself, then Turnkey is NOT for you. 

If their motivation to sell is high, they are more inclined to accept an offer below what the property is worth. 

Our current tenants want to buy it and I'm very inclined to sell it to them as the margins have been making me nervous (increasing property taxes and renting at a market high rate). 

Hey Chaz,I'm inclined to go with @Theresa Harris here.

My initial inclination is to calculate a price using the $220/sf for the top two floors, and a discounted price /sf for the unfinished basement.

I'm inclined to adhere to our cancellation policy but I'm having trouble putting into words the rational.

@Joshua Van EveryIf it was a flip, I’d be more inclined to do an inspection than in a run down dump.

My inclination is to report the shared LLC expenses as "Ordinary business income (loss)", which will almost always be a loss.