So this just like a double basis rule when you gift a property with FMV Less than the adjusted basis of the donor. 

Consider it a gift that you have been set free from this pathetic unprofessional property management company.

I am not gifted with tact.

With any of this, I'd talk to some local area investors and get a good agent behind you that can help with these things and advise you of the pros and cons of each.In some areas, I've heard of writing letters to the sellers, or even giving a acceptance type gift (like for real, other agents have told me in big markets that they will give the seller a non-refundable $25k upfront to accept (even if there's like an inspection issue or something!

Fresh flowers and a welcome gift are great touches that will lead to 5 star reviews.

I certainly am not looking to be repaid however my parents are insisting on offering me the property at a discount (or selling it to me and gifting the downpayment back).

It’s such a gift.

Any suggestions on going about this without getting involved with "gifting taxes"? 

You could also get the down payment gifted to you, from a relative perhaps?

Assuming the $200K price is fair, he wants us to pay $100K to him and have the other $100K be a (wife's inheritance) gift.