In fact, this sounded a lot like a lease/option arrangement in many ways minus the option part.

Again this will involve babysitting though and an arrangement with a tow company willing to work with it...

I have arranged financing in the event I want to pull the trigger (20% down).

She had a for sale by owner agreement (secret agreement) that she had arranged with the tenant that the tenant showed me.

It all depends on how much work he is doing to vet and find the properties and exactly what your arrangement is.If you are both finding and vetting properties and when you find one, he just puts his license number on it, then no he shouldn't get paid personally.Are you sharing all costs and work 50/50?

There is a "parking arrangement" where an Exchange Accommodation Titleholder (part of the Qualified Intermediary operation) will acquire and hold or "park" legal title to either the replacement property or relinquished property, and there is a concurrent/simultaneous 1031 Exchange. 

Also, unless you make arrangements otherwise, servicers such as FCI will not advance escrows.

Speak with a college advisor to see what classes your college offers that resembles anything real estate related.

Any tips or important things I should know about the application process and living arrangements etc. ?

It is usually based on the level of care and # of beds.I would steer away from renting directly to the person being cared for and have them make arrangements through the Assisted living facility.Your landlord policy might be slightly more as you are leasing to a business instead of individual renters.Hope that helps.