He said what I should do is transfer the property to a land trust with the sellers as the beneficiary & my agent as trustee...I could then give an affidavit of trust to the FHA lender and it shows that the property essentially didn't change hands..I would also get an assignment of beneficial interest from the seller, that document doesn't ever get filed (or exercised) unless I would need it, like if someone is questioning ownership.Since my agent (attorney, REagent, best friend, whatever) is the trustee, they handle the sale and distribute the funds..Anyone ever heard of this?

The may well chose not to exercise that right.

Then $10,000 / 25% then you can do a $40,000 deal.The above exercise narrows your search down and you will be more successful.Then assess your personal life situation.Example: Single/married kids/stay at home/still taking classes/etc.How do you either invest or reduce living expenses:A. 

If your end buyer is willing and capable of exercising your option then they can probably exercise the option with the original seller.  

Do this little exercise each and every time and soon you will become the successful real estate investor you want to become.You will profit greatly from real estate investing if you take action and share this with your family and friends.

The first things that can get liquidated or exercised will.

I suggest either instead of or in addition to craigslist, you do the same exercise with Zillow, hotpads, trulia.  

I was expecting 1 of my 5 rentals to possibly have an issue with rent and had some options available to help the renter out , but did not need to exercise that.We will see if this continues next month.

I would challenge you to find that mythical "other" value add, first (as an exercise).

That might be a hands and knees exercise, but will save you unnecessary labor and expenses.