Best Option to Finance an Agressive Seller

[Account Closed]

I lifelong friend has been renting his house here in Illinois for the last 5 years but lives in Arizona. He is willing to sell me his Illinois home for cost. He's currently checking with his mortgage company to see if his mortgage is Assumable (likely not). Either way, I won't qualify for another property since I already own two. I have stellar credit but my Debt to Income ratio is slightly high. I'm currently funding two other property rehabs in which the owners (my children) will cash out refinance my contribution. I receive interest plus minimal principle payments from them totaling 550.00/monthly. My other rental yields 1200/monthly but I carry a mortgage on that. Long story short, because of my DTI, I am trying to get creative and need some advise:

1) My son and I can purchase the house together but we don't have the down payment (can fund the renovation).  Collectively our income and credit score will get us approved to refinance should we not sell.  Since the profit margin is small (about 18K), and we are in the winter months, the junk fees and high interest of a hard money loan seem to rule this out (but I could be wrong).  We certainly can't fund a down payment with borrowed money anyway.  Thoughts?

2) I discussed owner financing but the seller just doesn't want to deal with this property anymore and wants full separation as soon as possible.  So I then offered to fix it and sell it for him and we split the profit.  Again, a no go.  Therefore, if I sought out an investor, how would you recommend I structure the sale to close quick?  Again, the seller doesn't want any existing profit, just take my "mortgage and deed and be done". 

Also, my exit plan options don't work if I can't refinance into my own name should the property not sell (again my DTI). Current rental rates will easily produce positive cash flow but a hold plan won't get the investor paid back quickly.

Some basic property stats:

Newer roof, siding, soffit/fascia, furnace, a/c, water heater, sump pump.  2-1/2 heated & insulated detached garage, newer window in Master bed, new front and back entrance doors, electric up to code:  100 amp service, upgraded lines, GFI.  Updated 1-1/2 bath.  The owner was a contractor for years (building custom furniture and commercial spaces).  Solid home.