my only concern is back in 2016 i converted the master bed room and bathroom in to a studio (not permitted) with its own entrance and kitchen i sealed off the entrance  to the main house and currently my parents live there paying me $500.00 a month i am worried that the studio will one hurt my appraisal (cant find any comps) so not sure what it will appraise at in its current state and second will the lenders have any issue's refinancing the home with the illegal studio ???

One of them is in college and her parent is on the original lease as a cosigner. 

Each of your parent can give you and your spouse (if married) 15k each without incurring gift tax i.e You and your spouse together can receive total of 60k (4 checks of 15k).If you are not married, you can get 30k. 

Every time my property manager knocks on the door no one answers or they have there kids do it and say there parents aren’t home.

I'd think a clean well taken care of place to live for $500-700 or whatever your rent range would be...would be no problem to find a good tenant - We lived the life of renters for a year and a half or so for the first time in our lives and quality rentals that are reasonable in Topeka is akin to winning a lottery ticket -- if you can't tell I was quite discouraged and very disappointed most of what's available if it was nice went immediately for ridiculous prices and most of the rentals were garbage for what was charged.My perspective comes as a home owner the instant I moved out of my parents house at 24 and then starting to own rentals at 26 and having never rented - so I'm probably again suffering from bias and a jaded perspective having been forced to rent. 

Have parents co-sign.

If the liability comes from outside (your child injure someone with your car), you can only loose what you own under your name, not what is inside your LLC.Insurances and entities are two different kind of liability protection.

I know if you buy a house for your parents you can still take out a conventional loan but am not sure about buying a house for a sibling to live in. 

I don't feel like I own this tenant anything, as they have been bad neighbors above all else, but I am troubled by the idea of putting a single parent (who is out of work) in this situation. 

I'm gonna try to make this short, but bear with me, it has alot of moving parts.My sister met this guy, became pregnant, we lived about 45 min away from where the BF lived, the BFs parents wanted us to move closer to them, so everyone could be with the baby, the Mom of the BF had a 3/2 and said we could all move up there, myself,my mom,my sister and my sister's 5 year old son.