He could then gift or pay you separately from the proceeds around $19k per year, which may be more tax-efficient overall.But that does not get you all the proceeds of course - the only other way I can think about it is for you to 1031 it into another piece of real estate if that would work. 

Planning on 25% down and a conventional loan for the rest, near 7%Basically none of the deals cash flow, much less get anywhere near a CoC of 10% I can sort of rationalize it if it at least pays for itself (appreciation/tax benefits), but unless I can either get the NOI way up or the sale price way down why wouldn't I invest the cash in the market?

Your parents could sell you the home at a discounted price, applying the gift of equity to reduce your loan-to-value ratio.

Since I have the income and credit to secure financing, and already own a primary residence, they’ve proposed that I purchase the home in cash.

Purchase price: $65,000 Cash invested: $65,000 Purchased with a cash out refi on my original primary.

I'm 67 years old and I barely make it on SS.The house in Arizona is paid off so I could rent it out and it would be cash flowing.

I would weigh your interest in the cashflow of the property vs what you would do with the cash in the event of a cashout refi. 

It definitely helps scaling in real estate to have healthy cash reserves and a good understanding and respect for leverage. 

DSCR loan, cash out refi.

What You’ll WinEveryone who submits 7 completed deal analyses will be entered into a random drawing to win:1-Year BiggerPockets Pro MembershipFree General Admission Ticket to BPCon 2025$100 Gift Card to BP BookstoreThis is your chance to get serious reps analyzing deals, sharpen your investment criteria, and maybe even uncover your next great opportunity.Let’s see what you’ve got.