The new PM did initiate the transfer of service and reached out to the tenants, but since the existing PM hasn't confirmed the transfer to them, they're understandably suspicious. 

It's not hard to understand the disqualified party rules and prohibited transactions. 

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.The City of Detroit has 183 Neighborhoods we’ve analyzed.DM us if you’d like to discuss this logical approach in greater detail!

Does he understand, Deeds, Due On Sale, Insurance, tax implications, servicing, contracts and so on?

While I understand you want to buy the house, you are at the mercy of those that your relative sold the property to.  

Are you a US citizen who understands how things work legally in the USA?   

@Chris Mahoo many new investors don't take the time to properly understand RE investing.1) Many are using approaches from 2010-2018 when Class A property prices were so low from the Great RE Crash that an investor could cashflow and get pretty easy Class A tenants to manage.2) If you look at what investors were doing before 2008-2010, most were buying Class B & C rentals.To make it worth while, an investor either needs to Fix & Flip or invest & hold rentals for 10+ years.- Over a 10 year period cashflow will increase as rents increase (rents typically rise faster than property taxes, insurance, etc.)- The property should be appreciating, if purchased in a good location, increasing the owner's equity/wealth.- Rents will be paying the mortgage off, increasing the owner's equity/wealth.- If you hold a rental until death, you can pass it on with a stepped-up cost basis, limiting captial gains if then sold (limited by inheritance tax limitations).Too many newbies on this site trying to replace their day job income via "passive" real estate investing w/o digging deep enough to understand how it really works.

However, to my understanding, a 1031 conversion of an investment property to your primary residence after a safe harbor of two years does not trigger a tax event.

Never pay an upfront fee.You didn’t mention your state but understand that with little exception, an NMLS registration is only required for consumer-purpose loans.

Instead, start by sharing why you’re interested and ask questions to understand the seller’s motivation like, ‘Why do you think it hasn’t sold yet?’