Path forward might to be to handcuff your parents to ONLY properties that will cashflow as a rental, and have them pay fair market rent.

I’m fairly new to RE, but it makes more sense to me that you’d keep using cash flow to pay the mortgage and start banking as much free cash as you can so that when the market cycles down, you can buy more properties :) if you are so inclined.

So, the bank assumedly "bought" the property at a "real" auction because (1) it wasn't happy wtih the bid amount, or (2) it wanted to pursue the owners for the negative equity, and needed the property to sell at the fair market value.That makes me think it is clear this is the primary lien. 

Ensure there are no hidden fees!

You have a fair amount of capital, you should save that up in case you need it for personal expenses throughout your business journey.

I think we would be interested and willing to have someone we paid a nominal fee each year just to be able to answer a call or a couple of emails.Maybe do an initial consultation and/ or an annual checkup and onboarding to get us set up properly in terms of entities etc. ie does it make sense to create an llc.maybe have an packet available to answer basic questions like dos and donts of fair housing, evictions, Collections, recent law changes,the setup and use of an llc, trusts, wills etcThat way we are initially doing things properly and have built a relationship before we have larger engagements or are paying thousands due to initial poor planning.

@Sam Josh that’s fair!

My property manager didn't seem worried about renting it and they rented fairly quickly. 

A form a lawyer provided:FORM TO REQUEST AN ASSISTANCE ANIMALWe are committed to granting reasonable accommodations when necessary to afford persons with disabilities the equal opportunity to use and enjoy our rental properties.Under the Fair Housing Act, a person with a disability is defined as a person who has a physical or mental impairment that substantially limits one or more major life activities.

We believe it's fair as we are getting a experienced home builder who has all the same subs for last 15 years and he is getting to build more homes every year and gets to showcase designs that today's customers will want and appreciate!!