-Lived in it for 5 years as primary residence. 3.75% interest rate.

Combining a reverse exchange with repositioning a portfolio geographically and taking advantage of combining sec 1031 with your primary residence exclusion - There's some awesomely savvy moves you're contemplating.  

Considering you are trying to close June 2nd, that is really not enough time to get anything done, especially since this will be your primary residence.

I'm new to investing and found a house that we're thinking of using as our primary residence and we would rent our existing home.

You can also ask for an early termination buyout where if they still owe 2 years on the primary term they pay you for 1 to cancel.

Of course, you should be doing the same with your seller ... since your primary goal is to have them sell their property.On the other end of the transaction, if you were to offer to purchase a property from us and ponied up less than 1K or 1%, I'd probably hurt your feelings.  

I am, however, interested in perhaps selling my primary residence, for the right price ;), and have received some letters from RE agents saying they have clients who are interested in the house as it's in an area with low inventory. 

The ex-wife has talked with the bank about doing a deed in lieu when the time comes, but i don't think that is allowed with deed in lieus because i think that only works as your primary residence as far as I understand and even if it did i think the amount would be taxed as income so she'd have an unexpected tax bill.The house is under water.  

What I found was that the past 3 houses he sold (he moved his primary property as he migrated further west with his job) were all seller carry situations and he would by the next place with cash.

Where this will not be my primary residence I am assuming that this is not going to qualify for an fha loan.