Is that super low or the standard?  

I buy solo all the time and just use the standard PSA for my state that realtors use.Here's one for MN:https://www.mnbar.org/docs/default-source/sections/minnesota-standard-residential-purchase-agreement-(rpf-01).pdf?

The condo is in pretty good condition, but I would still want to put about $40,000 of work into it to make it optimal by Brentwood standards (Re-do the kitchen, and spruce up a few other things). 

How does it compare to perhaps a standard loan and an FHA loan? 

Thanks Dwight Jones I thought there were a standard few options when it comes to purchasing.

So, unless your parents moved to another home and converted the current property into a rental for a year or more (there's no specific time limit, but this is the standard), they would not be able to use a 1031.

When they pick, draft a standard PSA and open escrow.  

If you talk to a RE lawyer see if there's some standard in your state/area about specifying repair responsibilities in the lease; that'd be a simple solution.You haven't signed anything yet saying he can stay, right?

Some of the pockets are undesirable based on our standards but you get a high cap rate.

Standard features that big box stores charge $2000-$5000 extra for.