I'm new to the game and just trying to figure out how to get as much information as possible on the situation.

A lot of investors are looking for distressed owners in the situation you described.Couple thoughts if you are targeting to investorsFigure out Valuation:1.

In a situation like this most investors will provide the seller with two to three options for carry back with different exits, terms and or interest rates

This isn't an ideal situation for me even at the deal I acquired the properties for.

Thanks for the reply I think my difficulties would be the down payment in this situation plus tif the don't account for the rent income my W2 job wouldn't qualify for the size loan which is whee I'm stuck at trying to figure out any advice on this would there be a way VI's say a hard lender for the down on the FHA or any other options like mentioned before I'm still very new and learning a lot everyday on how to go about buying property's as an investment

I am a Business Process Architect at Commerce Bank, who is looking to start building wealth and retire early to spend more time with my family and friends without stressing about work anymore.  

For your situation, hard money is fine, but I would make sure you have a contingency to complete, and own the property yourself if transitioning to him doesn't pan out.

They're harder to find (fewer of them) but worth the search effort in your situation.  

I have: -$14k in a traditional IRA-$5k in Roth IRA I have pre-approval from my bank for a conventional loan in my name for $80,000 purchase price ($12k down, $68,000 loan).I've searched the forums, but haven't found resolution to my exact situation.

My point is: don't stress about 2% - look at the bigger picture and see if this is the right return on investment to suit you.