You can mitigate it with research and due diligence etc, but there will always be risk - your property may not rent right away, there could be a natural disaster, you may get unlucky with timing or tenants.

@Evan EldridgeIt is natural sometimes to go through deeper analysis; as we are afraid to take the first step; for fear of losing money.Welcome to real estate world of investing.There are many strategies in real estate and you can explore what works based for your needs (wholesalign, rental or flips) and time and effort availability.There could be hard money or private lenders who can help you fund; say 80% of the project and you cover the 20%. 

Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the “cause of action” arose in that state.

I am utilizing Tenant Cloud and they seem to have an integration with Legal Nature.

Always wanting something new, this is human nature, and if they are willing to foot the bill plus some why not do it.

Frankly, your relationship might be best served by selling as it would be a natural exit for the parents. 

(J) "Disabled licensee" means a person licensed pursuant to this chapter who is under a severe disability which is of such a nature as to prevent the person from being able to attend any instruction lasting at least three hours in duration.

Naturally, this is a numbers game, and the way we stay in and expand business is by maintaining the numbers. 

You can have the building inspector in to determine if the work is to code and, assuming you had all permits pulled, you can make the contractor redo but most of the work sounds cosmetic in nature.

Pick your preference of natural disaster.