Best mechanism for taking over my parents' property?

[Michael G.]

I have a situation that I could use a little guidance on. My parents (retired) own a property in California that is currently rented out to tenants (breaks even). The property has an ARM at a current rate of 3.375%. The unpaid principle balance is approx. $680,000 (with a FMV for the property north of $1m).

My end goal is own the property (and move into it in the next few years) and to refinance it into a fixed rate mortgage. What is the best approach here? A few things on my mind:

1. Under California law, a parent can transfer title to a property without triggering a Prop 13 tax reassessment
2. I will ultimately inherit the property anyway. My parents estate falls below the threshold for the estate tax.
3. There is a good chance I move into the property in 3 years (and an equally good chance that I remain living in my current city for a little longer and then move into it).
4. Given my current DTI ratio and assets, I will be eligible for a refinance. One thing that is on my mind though is that if I have a $680K mortgage in California, it will make it trickier to buy a property in my current city if I choose to stay here.
5. I have siblings that would also inherit this property but they are comfortable with me taking the property as long as they are squared away, e.g., split the difference between mortgage and fair market value among them.

Is there any thing else that I should be considering from an accounting/tax/investing/legal perspective? Is there a better mechanism for me to get to my end goal (e.g., a trust instrument)?