The first 2 steps in our process with any client is to (1) first determine the clients goals and objectives for the investment (i.e. additional cash flow, retirement vehicle, wealth building, etc.) and then (2) secondly to explain the market in which we invest - explicitly.I would recommend that you start by defining the goal of your investment before doing anything else.

My objective was seller financing, which I got on this....10% down and 20 year amort.  

While it's exciting to get into RE investing with a partner, you really have to get the emotions out of it and look at it objectively.

Purpose of meetup is to get to know them better, what is their background, REI experiences, objectives to determine some level of suitability and interest in what we are doing.  

I make this contingency perfectly clear to the seller at the time of signing and haven’t had anybody object to it yet.

That way it also limits objection like, "well I need to have my attorney review it."

Our primary objective is to increase our capital to make a larger deal within 1 year of our first purchase.

For creditworthy people, often they do FHA because it's easier for the lender to get an FHA loan through than Fannie, even though 5% down Fannie is objectively a better deal (ie, lazy lenders).

It can be done, just take the emotion out of it and rely on verifiable objective analysis. 

The objective is to take over in the owner's place so things like this don't happen again and earn a return on my investment for satisfying these debts and managing the property.