Plus we share the same rare last name so we're probably related somehow.

Honestly, I'd suggest you start replying to every real estate related part-time position on Craigslist and line up a job there so you can quit your current job.

The one year requirement is Not related to getting a second FHA loan.

I've read multiple suggestions on related threads to contact a real estate attorney, but I don't want to spin the hourly wheel if I can do some of it myself.

Just say "hey I am a neighbor that knew your Relative and the house is deteriorating and wondered if you were interested in selling it."

A topic I can relate too

I would consider it more of a general business expense rather than a specific property related expense.

If this is REO, some of the bank addendums will have a clause in there that if the buyer is also an agent (or has some relative as agent), then the bank will not pay the buyer side any commissions.

When the parties were not related there were questions but not much of an issue.

Then wite a check from his account to yours and tell them it was a loan by related parties and has been fully repaid.