Does the buyer technically own the house even though the seller might hold a mortgage on the house?

Hi David - Yes, your second loan can be an FHA loan since your current loan is a conventional mortgage, and since you are planning on the new property being owner occupied.

He will draft the mortgage for them and provide title insurance.

Some will have been notified, but, if there is a mortgage on the property and they are not aware that you have been the winning bidder of a redeemable deed on the property and you come to them after 6 months to take ownership and they say they did not receive notice then you will have to start counting your time frame over again. 

I've been able to cover my mortgage+HOA, but my margins are pretty thin to none due to the unexpected project cost.

@Leland Smith It is nice to talk about comps but I strongly suggest you begin by looking at YouTube videos on the Uniform Mortgage Data Program.

How long must I rent my Chicago condo out before I can count the income toward another mortgage in Florida?  

What are the real tax benefits to the seller when transacting via purchase money mortgage...I can see if the property is not a primary being taxed at capital gains for the sale...but what happens when the seller files taxes at the end of the year...how do they report income from holding a mortgage?...

I'm just looking for suggestions as to getting a mortgage.

I must put 15% down which takes the loan to low to get a 30 year mortgage.