Also, I believe if he were to co-sign with you (assuming he can), the only way to get him off of the actual LOAN would be to refinance once you can qualify for the mortgage on your own. 

I was thinking about trying to find investors and then when I qualify for FHA in a few months re-finance the property and pay back but I have a hard time asking for money because I do not like owing people money.

This allows me to do quick refinances.

I am doing the same process now for the refinance portion. 

I am having trouble finding a bank that will allow me to refinance a property that I own in an LLC.

Upon contacting the loan officer, I communicated my intent to refinance the property later once rehabbed and then repeat the process to buy other properties.

Would we be able to cash out refinance the property once it was deeded to us to pay the trust?

I have been doing my research I wanted to tap the community about non conventional financing ideas.I am aware I can refinance the houses and use the money as a down payment on the building.

The "skin in the game" issue is handled because the deal really only works if *both* properties are on our portfolio (at least until we can refinance out of FHA and seller financing).Seller likes this offer, but is now realizing he'll have a substantial capital gains and depreciation recapture tax bill from selling these.

However, the seller knowing my specialty, countered asking me for a proposal with more upside for the seller or to do a rental arbitrage.My initial offer was a 5% upfront cash payment, 15 year repayment plan at 4% interest and attempt to refinance within 7 years to repay the seller in full and secure more traditional financing.