I currently do not owe a house, but my parents have thought about doing a HELOC (home equity line of credit) to help me buy a side-by-side duplex.

She said their parents would be paying the rent.

Students can have parent guarantors and often have lower and more manageable per person costs.

My parents didn't come with me, just me.

Then I got my license and my parents said I could drive to the store on my own.  

Unless their parents taught them differently, or they educated themselves on financial independence, they will continue holding this attitude toward money as they age and advance in their careers.

Don't want kids and their parents carrying things walking across the street, in the middle of the street. 

Money isnt a huge issue, I would be going into the purchase with personal savings as well as a gift from my parents.

Yes have the tenant sign a agreement allowing you withhold the security deposit for allowing them to break the lease. 

He inherited the property from his parents years ago.