Tell your agent to proceed with back up buyers and not worry about the ones who are not cooperating.

I can't think of any that haven't, although I had one that considered not.On several occassions I've had to wait until the following day to collect the proceeds due to the buyer bringing a cashiers check to closing and the title company holding all paperwork until it posted.I wouldn't count on this being a solid source of income, but it is an extra option in the toolbox.

He proceeded to explain to me how amazing his property was cash flowing since his mortgage was only $950 a month and rent was $1100.

If your SDIRA buys the property, then I believe all of the proceeds have to go back into it (which may be what you want, I don't know).What this means for you is that you have to make sure that the number for this property support the additional debt service of your primary mortgage (to the bank) and your secondary note to your SDIRA.

She can seller finance the 1/2 interest with proceeds being used to pay off the loan.

I'm looking advice on how should I proceed, if at all?

I'm looking advice on how should I proceed, if at all?

We are not trying to be greedy here but it makes the most sense to me to get a nice payday up front, the down payment from the buyer of roughly $30k plus earning about 3% interest on the bank's $170k rather than just 7 -10% on our $30k proceeds from a straight sale.  

In this case that is probably in the 800K range.Secondly, you must use all of the proceeds generated by the sale.  

Looking at the  liquidity and net worth statement along with a bank statement will weed out the pretenders from those that can actually buy.On the commercial side I work with newer buyers but they also have to show the capability to buy with statements or we do not proceed.