If it was your intent to sell to one non-disqualified party with teh intent to have thme re-sell to the disqualified party 3 years later, then yes, it could be ruled as a prohibited transaction.

Because of that, you will want to watch out for the non-compete clauses.

Now the tenants are out because the power was shut off for non payment, but they owe the outstanding water bill, the balance of unpaid rent, court costs, and clean up fees.

For my non real estate investments I have some IRA money in oil royalty trusts and in natural gas pipeline companies.

Put on market for non-fha.

A non-assumable loan can become effectively assumed by using a land trust.

Also If the contract is written at a higher sale price to use the gift of equity, will transfer taxes have to be paid on both the financed and non-financed portions of the sale?

How soon after non payment do you start court proceeding?

For what it's worth, Mitch makes some good... actually GREAT points regarding the often overlooked upside of renting in slightly nicer areas (non war zones.)

@Jason Mak, Cost segregated property does indeed qualify for 1031 treatment.