I have been doing some research, and it seems that if the tenant asks for their rent due date to be changed to coincide with the day they should receive their disability check, then that's considered "reasonable accommodation" under the Fair Housing Act.A judge may consider that PM did not give "reasonable accommodation" to tenant if it went to court.

I understand that the seller will have to pay the lender out of the proceeds, but I'm wondering if there are any ways that a better deal for both parties can be arranged.Any suggestions ?? 

But I Don't want to proceed until I know it's legal and OK. 

If you're essentially doing 100% financing of the appraised value, even living in the place you'll be pressed to get a 95% LTV loan (there won't be enough proceed to pay off the seller financing and the private lender).  

Who ever is first debt position gets paid first from the proceeds of the sale.

I don't really want to do a 1031 transfer because I will want to be able to pay my grandfather back his investment then use the proceeds to start another project without needing an investment support the next time...

So how should I proceed to get unsecured lines of credit?

Now I can proceed unencumbered on BP.

Texas lenders are also not permitted to require borrowers to pay debts with proceeds of second mortgages or home equity loans.

Either way, I would immediately get an appraisal, take the appraisal to the court house and challenge the taxes.