Also utilized family connections so I had an advantage there of some nepotism.

You only mention refinancing which is not only done to lower rate, but also can be used to take advantage of runup in housing prices to allocate to other investments that might generate a higher return. and of course selling the property within that pay back period.

Syracuse is poised to experience unprecedented growth, and though competing with other buyers is a pain right now, you have an advantage being right on the ground.

Either way for many people it's a good idea to own real estate inside of and outside of your retirement account to take advantage of the tax benefits personally.  

Bottom line is that I believe in real estate investing for the long term, and feel like I'm in an advantageous position, but am pretty cash poor currently, and don't want to walk away from a good deal if this is the one. 

You need to answer all the above questions, then identify a course of action based on those answers, and then place those actions into the three categories above.

It all seems pretty feasible and attractive, but curious if there are many lenders or investors actively taking advantage of the program.   

The good news is that if since it is being used for investment use, you could also qualify for a 1031 exchange and take advantage of the 121 exclusion.

We did not agree to pay him that much and feel like he took advantage of us not getting the firm price on the front end.

So if you are currently in the 37% tax bracket then you could take advantage of deferred taxes + a lower tax bracket.