It shouldn't be taken lightly.Adequate and appropriate liability insurance would be a general first step (which might include a general policy and an umbrella policy).Maybe an LLC makes sense, but you'll want to rope in your tax advisor to make sure you're keeping administrative costs as low as possible in the beginning.A good tax advisor will help you navigate business deductions surrounding the use of your property, as home daycare allocations are unique.

You can also foreclose a lien in order to force the property to be sold at public auction for repayment of your lien.As a partial owner who is in possession, or as a lien holder who merely assumes possession, you can use the property as your own -to the exclusion of any remaining heirs.

After close you finance with a lender and pull out 75% cash and repay your parents (hopefully with some interest).

This brings me to three main questions:Financing – My investors are flexible with repayment options and we have discussed a mix of fixed interest and/or profit-sharing.

He is now paying regularly more than the rent to slowly repay the outstanding. 

All goals are achievable in Denver, even in this market, you just have to be a little more creative and unique than the average investor.

I will say, as someone who used to live in Columbus, Columbus is in a unique position in that it is appreciating but the market isn't too mature to cash flow.

Repayment can be structured however you like, too. 

When you have access to the VA loan, you are in a unique position to be able to purchase a 3 or 4 unit with $0 down.

you might want to let the owner know first then include all agreements in the lease contract. landlords have different priorities at any given time, you could probably swing it better by addressing their unique concerns. good luck.