Also have you been able to see the property in person or are you relying on an agent to be your eyes and ears on the ground?

Knowing this information will help you identify the right professionals to bring on board.At minimum, your team team should include:Financial Advisor: to help with investment strategies - portfolio diversification and risk management.Real Estate Agent/Broker: to help with property acquisition and market analysis.Accountant or Tax Advisor: to help manage financial records, tax planning, and optimization.Attorney: to provide legal counsel for contracts, agreements, and investment structures.Mentor or Coach: to offer guidance, insights, and industry knowledge.Networking and Relationship Builder (for everything else you will need): to connect you with potential partners and collaborators.

Your agent should have the experience to navigate this.

For the insurance, I would suggest you contact your agent but it has not affected my insurance to have pets. 

There will be a lot of agents advertising their market, and while this can be annoying, it can also be helpful when searching for areas to look in. 

I think option one is better if you want build a lasting relationship with this agent.

I've never heard the 25% thing before, but any difference between FMV and sales price would technically be considered a "gift" with potential tax implications for your parents.You can avoid most seller costs as there's no reason to use agents in this case.As an FYI: I always recommend avoiding a FHA loan, if you qualify for a low-down payment conventional loan.

Or working with a real estate agent yet? 

Not all agents are created equal when it comes to investments.

I see you're a real estate agent, but do you invest in real estate personally as well?