At least of what comes on market, every listing is negative cash flow and competition is simply betting on appreciation.

It appears yes, it is a straight sale.....you get the full price in cash, they get title....you simply get a portion of cash flow and the right to buy back later....can’t see how that changes the initial sale.

Your Cash Flow analysis is severely lacking expenses.  

Once you have earned some money and mature a bit you may find that it is also part of the responsibility that comes along with success that may lead you to simply want to help a community maintain or improve its quality and value.

I don't like the term run away.. you can simply walk briskly.. 

Yep, or simply transfer title back to your parents.

@Jacob Tracy I would be weary of the deal simply because it is not common to come across that large of a property for a 9 cap in this market.

He told me that if i want my 7% return, i can simply rise the rent of the currently renter, that will remain with a 3 year contract in the property.

YUP  exactly anyone who thinks low value  assets are passive simply does not know what they don't know or are in denial or will get an education real quick. 

However, I can make contributions via a back-door rollover simply by contributing to my pre-tax IRA account and partially rolling those funds into the 401(k) account. .