That will change by next year and will increase your expenses substantially.

I have near 800 credit score, more than enough to put a substantial amount down, no debt (except owing $700 for a iphone and cc balance I could easily pay off), and am a financially responsible individual, just in the process of generating more income.

I would have a local broker do a CMA for her on the value and then refer her to a Q.I (Qualified Intermediary) for the 1031 exchange.But if she lived there for 2+ years, she should be able to avoid the capital gains tax unless its a substantial windfall, thus negating the need for a 1031 exchange.

Quote from @Gary Abner: @Ko Saynourath:Hi Gary,As a landlord, I take pride in taking care of my tenants really well because the favor will be returned.

If there are folks in front of you, they may not have interest in taking possession and have more interested in getting their money from the jurisdiction (which you will pay to redeem the liens if you plan on taking possession).

Just because the seller is making a substantial profit, doesn't mean it's wrong. 

You will likely have to pay substantially higher interest rates, you might have to go the "personal loan"-route(either "secured" or "unsecured"), and bite the bullet on the APR, and even the tax-deductability of the interest on the loan(?...

A prospective Lease-to Purchase was lined up to occupy the home and cover the mortgage payments in many variations of this scheme a portion of the kick back money was supposed to "protect the Investor" some of the bolder operators actually marketed this a a second chance opportunity for the cash rich and credit poor (People with income that was "difficult" to document) The rapidly appreciating markets allowed for substantial "equity spreads" the source of the "kick back money." i.e the FMV is 100K the seller has 45K into the property and would be happy with netting 18K profit, the change goes to paying all the closing costs and a gratuity to the buyer.

I'm a big believer in Taking Action!

This property has been on the market for several months and gone through a substantial price drop.