But because it sounds like the whole arrangement was off the books with an unlicensed guy it gets kinda fuzzy.

@Janille JacksonHUD guidelines allow borrowers to do their own work on a 203k (called a self-help arrangement). 

After 12 months on the "All Star" list, they also receive an appreciation card and a gift, such as a flower basket, door mat, gift certificate, etc.  

While not the reason why I do this, I’m sure it at least gives some pause for thought before some folks break up and bail on a lease arrangement.  

You'd still have to get your FHA loan as an individual and keep this side arrangement with partners off the mortgage.

The point is, without the estoppel letters to prove what the current arrangement is, the tenants can say whatever they want once you own the property and the seller won't be around to help clear it up because they're not even helping you now while they still own it. 

A few things that are always worth it: (1) full house cleaning (it should be spotless), (2) decent low-maintenance landscaping (you need to attract prospective tenants into the door (plant some flowers), once they're in, don't dissapoint them/keep them excited...(3) clean paint, (4) nice updated lighting, particularly in kitchen and bath.

The IRS often considers this arrangement as a prohibited transaction of self dealing.

Hi Diane, I am also seeking to arrange my first seller financed deal. 

Excerpt:Many states have reciprocal arrangements for granting licenses to real estate licensees from other states.