Your parents will need to hold the property for two years and you'll need to hold your replacement property for two years to let the dust and basis settle. 

Definitely talk to some of us "locals" though about the area the house is in and the returns you *should* be getting. 2% and 3% rule deals are possible in Little Rock, so don't settle for 1% if you're in a neighborhood where you should be getting 2%. 

Add HVAC to the repair list.If the house is brick, look for step cracks as signs of settling issues.

@Alexander Sobrado - There isn't a secret sauce but I can tell you as a relatively recent transplant into Des Moines (moved from Chicagoland to Bloomington IN to Davenport IA and have settled in DSM for the last almost 5 years...). 

Between the pet damage and the lost rent $1000/mo), I lost money (vs normal) even after getting her to forfeit her security deposit ($1300) and settle out of court in a 3 month payment plan for like $1200.Call them or meet with them and have a conversation about their strategy going forward to pay on time.

I've settled on small multifamily properties 2-20 units. 

Just don’t settle and try and skew the numbers, stay firm and be ready to walk.

When the dust settles, you’ve added another rental that’s fully updated and ready to go for a long time, and you haven’t permanently changed your equity position in your existing rentals.

Anyone who buys a property from you wants to make money, so if you are not breaking even, don't expect someone else to settle for the same.

If you settle on Milwaukee, there are a ton of talent in that market.