Hey @Dalton Foote - I highly suggest  using a renovation loan and house hacking a multi-family if that is possible with your current life circumstances.The 203k and homestyle renovation loans are just amazing products and drastically help you reduce your risk, in my opinion, because you are able to leverage the cost of the entire renovation with such a low down payment loan.We work with a lot of clients who use these products in Chicago, and no matter what, in the long term, they gain great equity.If you aren't able to house hack - the process is essentially the same, but just with more money down with hard money or conventional construction loan.

Sounds like she has a loan on the property still so the only way to get the deed into your name is to have the loan paid off like normal. unless she has an assumable FHA loan. 

(We switched to commercial financing when we ran out of loan slots with Fannie Mae.)  

My wife and I also own the only interior design company specifically for real estate investors, Ivory Home.

@Cody Caswell there's several things to ask about here that might not be answerable in a forum:- Why do you need an FHA loan?

Option 3- If they have qualified for FHA; counter the offer to see if they can qualify for low downpayment conventional loan

However, my debt to income ratio with that home loan, and student loan doesn't look that great currently and I don’t have much for a down payment.

@Mark Sullivan if you are a buy and hold investor these loans work great.

Quote from @Eric Huntermark: Additionally, as I'm thinking about conventional loan products as well.

Instead of a 1 to 1 ratio, the required ratio can be 1 to 1.2 or 1 to 1.25.More on DSCR loans: DSCR loans won't use your income to underwrite the loan.