What would you do?...Grandparent's House

[Tyra General]

Hi All,

My grandparents are both retired and owe about $36,063 on their current house. As you might imagine their monthly note is only about $600. It will sell for no less than about $200k. I am looking for advice on the best ways (creative) to help my grandparents move into a new house. I figure with all of these creative ways to make money in real estate investing, I need to also be able to use it to help when buying primary residences as well. Some of my thoughts are as follows:

-I buy their next house and rent out the current one and they just rent it from me.
-They take out a Line of Credit to help with bills,etc - and then pay off the house...then rent it out.
-They deed the house to me (what's the best way to do this to avoid unnecessary taxes) and then I rent it out and they can look for their new house.

Your help & advice is greatly appreciated!

God Bless,

Tyra