Plus, with a SF home, you have more options for renters.

Option: Start advertising it now and get an interest list.

A small apartment complex would be a good option also.

Proper Insurance and Steadily have always been solid options for short term rental insurance.

Neither option is bad and they both have tradeoffs, happy to talk about it further in person if you want as I live in East Mesa. 

At a minimum it would reduce some of the consumers options and flexibility in transactional structure. 

So, you  each have the option of taking debt, adding your own cash, or doing a partial exchange and purchase less than you sell (and pay tax on the difference).The guarantor of the mortgage really doesn't matter. 

Is seller Financing a better option versus using the FHA loan to find a property?

General rule is that you may get some things like improved general software interfaces, more experienced professionals (some people get REALLY specialized in certain topics, it's crazy to see sometimes) Also, the option that if you do have something unexpected come up, they might have more staff capable of handling it so you wouldn't have to move around at all.

If you still want to do that, options I offer, 1) if you want to sell the home FSBO, I can put it in the MLS for a low few, 2) Realtor Walk-Away Full-Service Option.