I am not even close to knowing a lot about this but it seems you want a more experienced person to take on liability and sign off on something for a reduced cost.

The other as a company with 2 partners( I will use a LLC to limit your personal liabilities).

So whether you have an LLC or not carry lots of liability insurance.

I have "Form Your Own Limited Liability Company" from them. 

An umbrella liability insurance policy ($1M) isn't a bad idea.

Jenn, all Umbrellas will require the Home and Auto to have high liability limits, like $250k or $300k. 

I want the LLC for the rentals for the protection and liability standpoint.

So you better believe I want equal liability on this deal to show them that I'm willing to go down with them if the deal ever goes south (which won't happen).

Mainly:pro: asset protection, anonymity (depending on the state), estate planning (fair value gift tax exclusion every year)con: creation and maintenance cost, limit the ability to get mortgage, bookkeeping and tax reporting cost, proper use to avoid piercing the veil.LLC is not a replacement for liability and umbrella insurance.

You could just have them lease you the property and have them allow you to sub-lease it, but that does not help with the coverage of liability for them.Best thing I can think of that would cover both of you is to create a seller financing deal where they sell you the house for the agreed upon price and you make principal and interest payment to them on a 20 or 30 year amortization schedule, but have a balloon payment due to them in 1 or 2 years for the total amount due.This gets the house in your name, and you can refinance it into an FHA or VA once you can qualify for it, but also covers them, because it is out of their name, and they will be getting the lump sum in a year or so.