You need to research what goes on in your state in regards to probate law.As for needing a real estate license, you don't need a license to buy probate property unless that case needs to come before a judge - most don't.In California, where I'm from, you do not need to be licensed to buy probate property if the PR has Full Authority because the sale of property then becomes a standard sale and anyone can do a for sale by owner in a standard sale.

That is why it is a standard feature of many Renter's Insurance policies to pay for alternate living arrangements should these be needed.

@Austin Carr sounds like what you are talking about is a standard Home Equity Line of Credit.

Requiring impounds is standard practice if you're over 80%.  

@Jonathan Ramos, @Art Herbert is suggesting that you structure the deal to finance the property with a standard mortgage at 80% LTV  (which covers the sellers existing loan) and ask the seller to hold a 2nd (carry the paper) on any remaining balance of purchase price that you work out with the seller.

I am looking at $1350/ month for the same living expenses (with CA taxes, $300/ month HOA , insurance and internet tacked on to the standard mortgage payment) if I buy this place.

If I need to seek a partner to afford a down payment on a property, what would be the standard terms of a deal like this?

There are several other standard market companies that should be considered prior to going with a nonstandard option as the coverage will be much broader, and most of the time, much less expensive.

The regulations state that a persons income must only equal or be higher than the rent preventing us from using 3X rent as a income standard.

I'll have $140 in it and could sell it for $240 right away, but the neighborhood is really starting to move, so hopefully in a couple years it'll be worth an extra $100K.I've got a couple others that I just did a light renovation on to rental standards and if the neighborhood really takes off, I'll redo them to high end "buyer" standards.You've got a good thought.