My retirement account is a Florida state retirement fund (so, I would have to quit my current job and possibly pay taxes and applicable penalties on the 70k and, there is a 3 month waiting period once employment is terminated).  

You're paying your tenant to live in your house, and the lost funds are losing even more by not being out making more.You need a partner.  

I have the funds but don't want to tie it all up in the deal.Does anyone know of a strategy that will require a lot less DP?

Now you may need to start more modestly and strategically 1031 exchange your way there, but that is a much more desirable end game IMO ... only thing better would be 40 free and clear units in Scottsdale, but if you start with reasonably leveraged units, you will end up with free and clear units in 30 years if that is your desired end game.

Then, your offer should be NO MORE than that value, less tear down and holding cost, less your own desired profit. ie.

You must find a way to fund the purchase since you are buying first and your equity is still trapped in your Relinquished Property. 

Being a recent graduate out of college, I don't have a ton of funds, so I've been looking into using a lower money-down loan such as an FHA.  

Maybe agree to escrow the roof and A/C replacement funds to reduce the risk for the owner.  

They claimed to fund 100% of purchase price anytime.

Where do you seek the funding or money to the asset?