So, if they let me borrow $17,000.00 then they would get back $1,360.00 plus their $17,000.00 in a years time.I would get that cash from the 1st property by pulling out cash and renegotiating the loan, or doing a cash out refi to get the $17,000.00 plus the 8% interest that I owed them. 

You're borrowing the money but your builder owns the lot. 

“Assumption refers to the transfer of an existing mortgage obligation from an existing Borrower to the assuming Borrower.”An FHA loan assumption is generally possible-for most FHA loans closed today, the lender’s participation and approval will be required in order to carry out a loan assumption transaction.

If you focus on the sellers needs and come to agreement on terms, inspection, and price, get it under contract via snail-mail, email, docusign then have an escrow company or attorney assist with the rest.

If you have any further questions, I am available to assist.

when you're talking to the police saying I need assistance removing criminal trespassers from my house.   

I would tell them the house will be condemned for the next 12 months and you will assist them in finding new housing 

If I can be of assistance to anyone, please let me know.

Most people in your situation will have their parents as co-borrowers on the loan.

My only complaint would probably be that borrowers are repaying their loans too fast - some in less than a month!