These type of people always have a story about the job they're about to get, tax refund coming soon, inheritance, etc. and when you drill down you find out they lack basic things (ID) that would enable them to follow through on their plans.

If I have a LLC and use a property management company for my rentals am I subject to the 1% earnings tax?

It would also essentially wipe out $400/month rental income and you'd lose the additional benefits like potential appreciate, tax advantages, etc.If you planned to buy another rental, that would be a different conversation because there might be upside there.

Now post-COVID you have a larger inventory, increased prices, increased interest rates, increased property taxes, increased regulation (even Smokies are now requiring permits) and increased insurance and at the same time return of the reduced Pre-COVID occupancy numbers. 

They would likely lose any homestead tax benefits and possibly lose other things as well.

We would want to make my parents the 'renters' and we as the landlord.Question: In terms of taxes, is there something we should consider when renting to our parents?

We are wanting to start a House Flipping business and are just looking for some legal and tax advice.

This is generally not tax-favorable as you are taking a large chunk out of the IRA at once and will pay a high rate of tax.  

Seller financing is a great way for the seller to avoid a lump sum capital gains tax, and still make steady/expected income on a property even after they sell it. 

It pays the taxes, the water and sewer, and the cost to heat the property while leaving some for maintenance.