FHA Concern

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Hello, everyone. Well, I've discussed with a potential buyer that I'll be doing a double closing, meaning the A-B settlement, then the B-C settlement. I told him that I'll close with the seller first using private funds, then close with him. I also told him that I'd prefer that he uses my title company. He said he's a cash buyer, but his concern is when he rehabs and resells the property that FHA funding for his buyer would be difficult because it will be revealed that the deed was transferred to me then to him during the double close. Mind you, he's not obtaining FHA funding, but he says that most likely his end buyer will after he fixes up the place. Am I baffling anyone? Well, I'm quite confused as I don't see why my flipping a property to him would give his end buyer difficulty with obtaining financing after he rehabs the house, which will take about 2.5 months. In addition, he suggested that he enters a purchase agreement with the seller, my relative, voiding my contract with her, then he'll cut a check to me reflecting the proceeds.

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