This proposal targets all short-term rental owners, including the vast majority who responsibly manage their properties and have never had a single complaint from neighbors.

You would need to put the properties into a portfolio and take a discount on the properties because of the 180 day time limit proposed with the 1031 exchange.

I've gone so far as to read community meeting notes from Bear Creek and review Army Corp of Engineer proposals and assessments.Note that none of these articles are AFTER Harvey of which you will find plenty thus the issue was known well before the Harvey flooding.Some Links:Extreme High Risk of Catastrophic Failure Two Worst in NationThe original 1940 plan for drainage was ignored- additionally this article goes over the "Tax Day" floods that ended up flooding multiple homes unintentionallyArmy Corps of Engineers Outlines 4 years of work in 2016 to make them adequate- I've also read the meeting notes and viewed the presentation of this meetingThe water will flow from the dams into Buffalo Bayou.

Maybe stating the obvious here, but their current lender would almost certainly not allow the terms you are proposing, and given that she is already behind on payments, it's going to be scrutinized much moreso than if it were a loan that is performing, so any plan that involves crossing your fingers that the lender doesn't find out is a bad one. 

@Sara Mickelson I vote on hanging on to quality as you propose and I would not encumber them to buy low quality.

Prepare the offer: Draft a written offer that includes the purchase price, contingencies (such as inspections and financing), earnest money deposit, and proposed closing date.5.

Just make sure that what they are proposing makes sense to you.     

The simple answer is to get a couple of true commercial agents out to your place and give you a proposal.

What you are proposing does not sound in the best interest of your parents.

What are the MARKET rents (not STR) ` what is sales price `will it appraise with a residential appraisal for that sales price `what is the condition of the property `is tenant in place     are a few of the questions to give you an accurate answer.BEFORE you do this have a lender licensed in the state where your proposed purchase sits go through all the income numbers and options.