Your concerns are valid and they should stop what they are doing and close on the property first. 

I plan to leave thr home as is no major renos, but would at some point add a bath room in attic area to make a nice mastet suit for value add.

Option 1: If the sellers concern with seller financing is not getting his money than maybe offer 10% deposit ($10k).

And on the other side I definitely think there are valid concerns around the impacts that an increasingly in demand market can create for those unprepared to compete with the demand.

I appreciate the concern, I can see how I could have misconstrued my intentions going forward.

At the moment i am just concerned with being able to purchase/invest in a property as i don't think i will get full-time job in like 2 years or so (maybe later because i think i may want to take some time off after graduating pursuing other things) and i would like to start doing RE as soon as possible but it seems that there is no other way besides co-signing or doing trying to file income under tax returns as kevin mentioned and hopefully i will get approved by a lender

He also works deals with his tenants to leave the gas and electric and water in his name if they need him too and then charges them $5-10 a month plus the bill for their rental.

I do however have the experience (25+ years) in design, architecture and construction AND i have over 500K in equity in my home (which is a 2 family)I would like to pull some money out of the home / borrow against the equity but again the banks will be concerned with the debt ratio’s. 

My concern is that I have been told if the HOA docs have certain language that it could wipe out the first position mortgage.

Your biggest concern will be limiting the cost of capital.