You should also have esstopal letters for each tenant to confirm all details of rental amount, date rent paid, special considerations, DD and/or LMR deposits.The primary issue you should discuss with inherited tenants is that rent in full must always be paid on time.

No consideration of risk seems to be mentioned, ever, anywhere. 

Fallacious assumption is pricing is linear AND has no consideration for amenities or local conditions.

As far as renting out the other unit is there a good place to find standard contract to draw up or is it something I should involve a attorney with.

One option might be using the FTHB programs to buy a livable home well enough under market value so that you can draw on the equity for a downpayment on your investment property.

Any IRS auditor will question the monthly draws from your bank account and ask you why you're paying your parents back after they "gifted" you their property.

Is it as simple as drawing up a residential sales contract and opening title at a title company?

If you are going to own it until you die, your basis doesn't matter and you might as well have them gift it to you now.If your parents are wealthy or the property is worth more than $5 million, then the trade-offs are more complicated due to estate tax and gift tax considerations.

My reasoning is because me and my wife will be in this area and can directly manage househacking, it's less stress and hassle on our end and we end up still coming out ahead because we can househack each house we have earning a considerably higher cashflow than traditional renting. 

In fact according to this site, they are at 1.3% which is considerably lower than the national average of about 5%.