Also, depending on the amount you get from your divorce, you might have more options. 

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

You can put in language for an extension for a certain payment amount. 

You'll have to ditch the seller financing and have skin in the game.Freddie also requires that borrowers meet minimum financial strength requirements (IE - liquid assets equal to 9 month's P&I [bare minimum], net worth greater than or equal to loan amount [bare minimum], FICO>=680). 

If he owes a decent amount on the property, wouldnt the conventional route make him lose whatever interest rate he has?

There is an amount that you can distribute from an IRA account to purchase a personal residence.You then might be able to turn the personal residence into an investment property.Best of luck.

Payment TermsContract Value: $[Insert Amount].Deposit: $[Insert Amount] due before the commencement of work.Payment Schedule: Payments to be made as follows:[Milestone 1 and payment amount].

This could allow you to use the full amount for purchasing real estate without needing to sell your stocks outright and incurring significant tax implications.

This amount provides a reasonable safeguard against potential claims if something goes wrong, like an accident or damage to the property caused by the tenant. 

I also keep a fair amount if cash (10%).