It really depends on your comfort level, specific situation, and other factors important to you.  

Or if you find a flipper you can trust and are more interested in learning on this first deal than making money (which is also a decent strategy), then bring them in to look at the property under the condition that if they buy it you get to "ride shotgun" on the deal all the way through to learn, and they may or may not toss you a small "bird dog" fee for turning them onto the deal.One other option, if you can get it for that (or a bit more, say around $400k) and finance it under a traditional loan, could you comfortably afford the mortgage payments?

The work is not as gratifying as building something with my own hands but the pay is steady and i make a very comfortable salary.

If my attorney blessed it, I would personally feel comfortable with structuring this as an LLC buyout as long as you confirm that the LLC doesn't have any liabilities you would be assuming.  

We are comfortable with being personally liable for the mortgage itself but we are uncomfortable with the property being in our names and would rather have it in our LLC's name.  

This could be higher than the current property taxes that your parents pay.Option #2 - You get added to title via QCD - quit claim deed, you wait 6 months (min required time by fannie mae for conventional cash out) , and you cash out up to 75-80% LTV max as a primary residence or as high as you feel comfortable to obtain the capital you're looking to utilize to invest with or you do a line of credit like a HELOC (home equity line of credit).The Pro's of this is that the home will not get reassessed for CA property taxes since your parents have not sold the property.You may have to account for this gift via quit claim deed - QCD but as long as your parents plan to be within the 5.49M of assets in 2017 (subject to change in the future) or annual 14k per year they should be fine (seek a tax pro).The other downside is you may not get "stepped up basis," for capital gains purposes for the whole property if they add you to title during their lifetimes (you own the property 50/50 with your parents). 

It is what you feel comfortable with.  

Make sure your tenants know and feel comfortable that they can text or call you with any questions or concerns.

Getting a loan letter from them could make the seller feel comfortable with you being able to close.  

It depends on the strategy you choose and the amount of leverage (debt) you are comfortable with.Good luck.