Have you and your partner solidified your agreement on how to do this venture? 

But, it's not a true negotiation in that either party can say whatever dollar amount they want, and then they have to wheel and deal and come to an agreement. 

We have a management agreement set up with the utility so that if they don’t pay the gas or electric the utility does not get shut off but reverts into our name as to save from pipe freezes.

I do know that I can get an official purchase and sale agreement from my local title company.

Both are financially strong ( all of our investors are accredited) and have other relationships with the banks.There are also some smallish private equity funds that will lend at interest rates in the 8-9% range on portfolios of notes, minimum loan size starts at $1,000,000 with 60% max LTV.In both instances the lenders want to see the quality and performance of the underlying notes being used as collateral.

The income from the couple (which still needs to be verified) covers my minimum to cover rent but that includes the expectant mother's income, which I expect will stop once she has the baby and maybe before.

They had to move for jobs a year ago and have a tenant leasing their home with 1 yr left on the 2 yr rental agreement.

At a minimum joists need to be sistered.   

3) Lenders only offer to purchase properties for a minimum of $150,000.Basically I would like to know if these obstacles are accurate and if so how do I overcome them.

Wait you say, this is not coming from any IRA accounts --- please hold on, because here is where I am going.At our local SD IRA meets, there is a law firm that specializes in doing lender agreements and they will be in attendance.