Some of these issues are resolvable, others seems to be impossible to solve completely requiring work arounds if you still decide to proceed with the property. 

You're not helping them either...you're allowing them to run a tab that is putting them financial ruin. 

FHA gets a bad rap because sellers and many agents think it's only for people who don't have the money so if I had 20 percent, but wanted to use FHA, I would present a proof of funds with my offer showing I have more money, but am using the FHA as a financial option so I can get an investment property as well somewhere else.

Prioritize your financial stability.

@Joseph BinkowskiDon’t forget that you can now be qualified as an accredited investor by passing the series 65 exam without any income or net worth requirements.It will cost you around $200 to $300 and will be valid for 2 years (unless you can park your license with a financial advisor firm, then it will last as long as you maintain it).It is not a difficult exam and you should be able to pass it with around 40 hours of self study with a good prep book or website.

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

Meet with financial advisers/wealth managers and see what other options other than real estate there are and how to best allocate / diversify. ie have you maxed out your TFSA?

I believe such plans are offered by specialty divisions of the mainstream financial services providers like CIBC & RBC.

The FBI’s Financial Crimes Unit investigates these matters for filing of charges on Equity Skimming violations.

You'll get lots of these, some with very enticing financial offers.