I tend to approach this with the standard personal finance rule: build a 6 month safety net.

The seller also conceded almost $5000 in repairs after the inspections due to some undisclosed safety issues with the electrical and plumbing.

The ceiling I’m referring to has an 8” wide drop down edge (drops about 6”, with lighting all the way around between it and the ceiling, and can lights on the bottom side of the drop down.

I work as a realtor for RE/MAX edge, I own several rental units and I also flip.

They want all listings to go on the MLS and then if the agent is a transaction broker representing both sides there are clear cut guidelines.  

"offered to let me leverage his FHA"I am no legal expert, but this sounds like one of two things: 1) tip-toeing around the edges of mortgage fraud or 2) simply a bad idea. 

Obviously there's a lot of STR down around the theme parks, but it's a double-edged sword since it's highly competitive with a lot of supply (both those for sale and those for rent).   

I have aligned myself with some important organizations like a third party inspection company to ensure the safety of the houses, and the Tiny Home Industry Association.

To cut to the chase, I am exploring using the seller (my friends mom) to finance the purchase until I can cash her out with a conventional mortgage down the road.

Jared,  I would cut my friend/contractor in for part of the profit.