Or (b) I also think that maybe there could be some liability on the previous owner since he turned off the utilities right after closing but didn't turn off the water so could potentially sue for damages.Looking forward to hearing from the community

You could start looking off-market.

It dropped 100 points form 740 to 640 and it has not come back up in 3 months.My parents are more than happy to take out the loan as they are very financially well off, own a few homes in cash, and have no interest in ever taking out another loan for themselves.

Boy, you are starting off in the most expensive RE city in the country!

I purchased a home 2 Years ago near olde town Arvada. I've done a lot of work, but it also was completely gutted previously. My partner lives with me, but I pay for 95% of utilities, etc. as well as all furnishings, r...

I found it off market through a cold call and negotiated directly with the sellers How did you finance this deal?

That being said, if you are the property manager, couldn't you consider yourself a real estate professional and run these profits through a separate S-Corp (or an LLC taxed as an S-Corp) and then draw off a W-2 / and a K1 and then shuttle these proceeds over to a solo 401k ?

Not to mention I got to write off over $175k from my income taxes using a cost-segregation study.  

Question: Should we rent this house(2nd home), which has offers for $820k off-market to sell, or rent for $5k, which also has interested parties? 

For a hands off investor its just a claim and another service ticket to be outsourced.Go over your declaration page you will have lots of decisions to make.