My parents are real estate investors and have used property managers my whole life since they have always taught overseas.

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

Gross monthly income (optional): $:|Monthly debt obligations appearing on credit report, plus (if applicable) personal rent and alimony/child support/etc: $Mortgage and a trivial amount left on a car note.

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.

I want to build wealth for myself and my (soon-to-be-born) child so that I can provide a comfortable, stable, and secure lifestyle for us both in the future (which hopefully includes a lot more traveling again one day).

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.