I'm finding it hard to believe that Xero doesn't have the ability to do this will all their custom reports stuff.In Xero I can't figure out how to get a view in a report how much the principal has paid down over the selected time period. 

You are correct in your assumption that it will impact how low they can go on the down payment, though, b/c commissions will need to be paid out of closing costs. 

Quote from @Shawn Questa: Hi all,I am curious what some of the Pros would do to Help a Seller in this situation while making a Deal happen.I found a 200+ day old MLS Listing where the Agent said the Seller is in Financial Ruin, hasn't Paid the Mortgage in a year, owes about 180k on an approx. 210k House and multiple Buyers have backed out.I don't know how someone could not Pay their Note in a year and not at least be in Pre-foreclosure. 

I'm willing to help this person in any way I can.

Once I acquire them, I feel confident that I can generate $11K per month cashflow provided they are paid off in full.

Finally got done building personal credit enough to seek pre-approval (as I have only just turned 21 years old).

I have been told that it could be better to save the FHA loan for a later property (Possibly a personal one), if you can put 20% down for a standard 30-year fixed loan.

Property values continue to grow in value, and you can actually live off the rental income.I think it's best to hav all properties paid off by retirement age, since that's when you are going to rely on cash flow for your living expenses.

The buyer of course believing he had purchased the house paid a visit to the tenant, who of course called me.  

All the tenants are recruited by the previous seller, so I don't know their credits and don't know their personalities.