Background:-My parents recently sold their business and have around $700-800k they would like to invest.

I still frequent it because both my parents have businesses in town.

Choice 2 sell to your parents or someone you can trust.  

As a parent, I can tell you that your intentions are good, but your options for what you want to do aren't going to teach her anything.

Thats a primary motivation for a DE parent, its easy to understand for consolidation for taxes and exit sale.

In college I knew parents who partnered with children to buy homes to rent to their friends.

This could incentive her to grow this business, be an equity owner, build her real estate credibility to future lenders, grow her personal finances, and even help her parents out with growing their portfolio together as a family.   

The house is in SoCal in the San Fernando Valley (SFV), specifically Granada Hills and my parents are looking to love up to Santa Clarita, if that helps those who are familiar with the areas. 

@Nick Pierce Ask a parent to set up and UTMA account for you.

Three years ago, I sold my parent's home to an RE investor.