I figure we’ll put in another $2,000-$3,600 in improvements.

Can I put in an offer and purchase the property in my own name, then somehow move it into an LLC for tax and liability purposes?

If they have to put another DP once exercising and are told all the money they put in it is not actually going towards purchase I personally would not go for that as a buyer doing rent to own.

It is in the first 20 days on market where only owner occupants can put in an offer.I am wanting to purchase this property with a 203K loan.

Having an office location with no distractions will help you get things done.  

I will put in 110% effort and drive and go above and beyond what I have to do to be successful in this industry.

I put in $50k from a HELOC and he puts in the $25k.  

Finance it for 75% of purchase price..... so you put in 80, borrow 60 back out.... use that to finish the house... with a budget back up to 140 for fixing and any overages.The way I would do it (which might not be available to you), would be to purchase it with cash, then use interest deferred credit cards to finish it quickly and get it on the market... but this is not the best option for everyone.One caution:  Be very careful using sqft for the value.  

I can always put in an offer with a proper due diligence term which affords time to determine if the deal works.

If your market research has comps at 1/2 the price of theirs then all you can do is put in your offer and still request seller financing.