@Rhonda WilsonYour advice to Bernard is totally off for two reasons:1) IRS rules do not permit IRA funds to be invested in life insurance:https://www.irs.gov/retirement-plans/retirement-pl...2) And two, I totally agree with @Steve Vaughan that insurance policy as an investment is very poor choice for the reasons he described. 

You are not allowed to use conventional financing inside of a retirement account.

Turn it into a retirement job - move into your really nice rentals one at a time and sell as you go taking less of a tax hit each time.But I"m a little curious about your numbers - remember that to completely defer al tax you must purchase at least as much as your net sale and use all of the net cash in the purchase.  

The seller is retiring and very motivated.

It's relative to what an investor wants.Some think 6 or 7 percent return kicks as$ with rent bumps because they have 10 million and are nearing retirement.

We are currently renting, have about 60K in the bank, and we both want to retire in about 10 years.

My other goal is to retire young.

I work in retirement for my day job so I get the power of real estate is FANTASTIC for the longer term as well.

They need a post close reserve of $81K outside of retirement accounts..which I don't have now...I guess #2 is the killer, so I gave up on #1 even though my DTI would be below 38% if UW back out the double counting of my expenses...Sucks....

I really like Florida and can see myself retiring there one day.