Is it typical to buy out the other investors interest in the deal?

You would establish what I call a "Master Lease" where you essentially rent it from your parents and they give you the authority to "sublease" to a tenant.

A property of that price is going to be a tougher sale for a flipper since they typically stay on the market longer once completed and it's a lot of capital to tie up.  

Are these terms typical? 

You'd go bankrupt if you were significantly below that, and wouldn't have any business if above. .8% to 1% to rate sounds suspiciously like the typical rate hit for investment property v owner occ, or SFR v 2-4 unit.

Having the place declared uninhabitable usually works to the advantage of a tenant anyway, and may require the landlord (eventually you) to make repairs to make it habitable (although a tenant's recourse is typically withholding of rent, so ...).  

Remediation is typically "encapsulation"...sealing, siding, painting over...but in some instances is needs scraped...that's a nightmare. 

So we're essentially a bedroom community to STL.

Essentially, the plumber open a drain plug outside the house, and blocks the outlet line outside the house.2.

Similar but slightly different is in past downturns was there one primary cause or multiple causes. your research may shoe there is typically one cause of a crash but it is a different cause every time so it is not predictive.