buying my perents home

[Liam Cordray]

hi, I'm new here and looking for some insight and advise

 I'm looking for some advise on how I should finance the perches of my parents home. here's some back round info. My parents are selling there home and moving away. They know I've been looking to buy in the area so they offered it to me, At a price bellow market valve. According to local real estate agents the home should appraise at almost 400k in it correct condition. My dad wants 170k, I've informed him of the value and that's what he wants. The home is currently livable but will need at lest 100k worth of improvements to bring it back to life. So here's my options as I see them.

1) pay cash for the house. then I would need a loan for the repairs

2) put 20% down on a 15-30 yr mortgage. this should leave me with more then enough to pay cash for the repairs. I can then take the equity out of the home if I so chose latter on

3)Do a gift of equity where I finance 100% of the cost of the home (170k) only coming out of pocket for the closing fees. the bank is willing to do this at the same rate over any term of 15-30 yrs

looking for your advise and the thinking behind it

thank you

liam