The whole Lady bird/FHA thing can have some hiccups and going FHA for your parent’s home will cause issues with you getting the next FHA home.Instead do a gift of Equity going Fannie Mae 5% down (use the gift of equity) to cover and for any closing costs.

My issue, is that from a consumer standpoint the industry perceives to switch from residential to commercial at 4.

In 2016, the city stopped issuing new non-owner occupied STR licenses - known as Type 2 licenses - for short-term rentals in certain residential areas.

How long you've had the properties and what the biggest issues were?

Maybe any legal / Tax rules that are different in CA than out of state.Thanks & Grtx Marc

A real estate broker or attorney could help you here or on the previous option.A legal document protects both parties, and most on here would recommend you use them, but sometimes between family members people don't use them.

Are there any legal ramifications to putting it down for $5k on paper? 

For example, a sandwich lease carries some of the same risks that any landlord faces, what I call the tenants and toilets issues. 

Partner with a qualified real estate agent, property manager, and legal professional to assist you throughout the investment process.By considering these points alongside the existing list and seeking professional guidance, you can increase your chances of finding a suitable multifamily investment even in a competitive market.

-Do you for-see any issues for me?