That's normally something you take into account during the planning stages.

(never stop negotiating - ask for buyer incentives - the furniture, car in garage, money back at settlement, possession - delayed settlement - subject to existing financing - offer a hybrid arrangement, financing secured by other property, no interest mortgage - split note financing - re-fi for take over/assumption)Always consider second stage negotiations for price reduction (give good reasons - exposed repairs after inspection - other issues found)Use safety contingent clauses in the event 3rd party assignee is not locatedSince you are doing your due diligence this target building - you should look for expired listing in the area and make offers on them also.

I like where we live now and we have a nice arrangement with my parents but I don't know if I should relinquish our ownership/stake in the property and cash-out and just rent from them or if we should maintain the current arrangement.

It's definitely good to ask the questions but so much changes from your planning stages to when you actually start doing deals that I've come to have the stance of, educate yourself yes, but take action first then as you figure out what you "really" want to do then you set up the legal structures to support that.

The seller had stage 4 cancer and it was a concern we brought up to the buyers atty.

To set the stage, my business partner and I sinvested 50/50 on 3 single family homes in Colorado Springs this year at the age of 25 (average purchase price of 230k-240k).

I would also add removing old,broken,warn out,or enormous furniture that is clearly unattractive and makes the living room and bedrooms appear smaller and less comfortable than they really are.The house should be staged with modern and appropriate furniture to show buyers what they're new furniture will look like in their new home.Excess clothing that is not normally worn should removed from overstuffed closets and dressers and donated to charity,thrown away,or boxed up and stored off site from the home.If your toilets are old or have unremovable stains that look terrible,replace the entire toilet.Bathtubs should be reglazed to look shiny and new again.

You can do a land contract but it seems like there is motivation and your new and maybe need to arrange something a little simpler. 

We both did well with this arrangement.

I'm in the final stages of a Flip project in Chicago (~3 weeks to completion) and the Property Taxes are due on March 1st.