Buying from step parent?

[Chad Morales]

Hello all, this would be my first post.  I'm not asking for approval to do something "wrong", i'm just not sure if there are rules or regulations or obvious legal/ethical/tax issues with the following scenario.  I'll be following up with profession legal/tax advice unless this is clearly violating or circumventing rules/laws.

My financials are strong with high income, cash reserves and low debt that makes purchasing a cash flowing rental a sound decision. There is an issue with my credit currently and unable to qualify for conventional financing. Is there a problem with my unadopted step father (not sure if it matters) purchases the property with conventional/FHA/non FHA financing and turns right around to sell it to me "subject to" plus the 20% deposit. Aside from a potential due on sale clause or liability concern is financing a rental purchase with this intent to resell "subject to" against a rule/law/regulation