He has agreed to put it on a foundation, fix the roof, construct a garage and whatever else needs to be done at cost and delay his pay until the property is sold.

It was voted the most content area in the country!

..once you are negotiating with the bank and agree on a NET PRICE to them, you can boost the purchase price adding in all rehab costs as part of the deal..you can even have the bank give your Buyers Agent Realtor a $2000 bonus which in most states your realtor can REBATE to you on the closing statement (limited to a max of up to 1% of the agents usual 3% commission..so there's probably a few extra bucks going to your realtor in the end and she will love you for that. 

Yea I agree with you, I would never invest the only 10 or 20k I have.

I agree with @Jeff CopelandSkin in the game.

However, I want to buy this house because it's a great deal, and I get the sense the sellers are just mad due to the fact that they agreed to the deal in the first place and are dragging their feet as long as possible to make me not to want to purchase.

I agree @Christian Bors , in my experience with other business ventures it is best not to partner with people you don't know.

I agree, renting to companies could be a good way to go.

All of the comments about not renting to family is the right business advice in the vast majority of circumstances, although I do agree with @michele fischer too. 

@Daniel Jackson I agree, and you're right, we don't have a marketing plan.