If we were to currently sell this under this arrangement, they would be 1031ing their 75% interest and we our 25% interest would just be sold as non-1031 assets.

Do they want to cash out at $117k is the arrangement?

You and the lender would have to arrange the paperwork such as promissory note and deed of trust (I'm assuming this is a secured loan?)

Some sellers believe that FHA loans are more likely to fall through during the underwriting stage, since the program attracts borrowers with lower credit scores and other issues.

Here's a sample of a letter I use when taking over a new property:Dear Michele:We are excited to announce that our company is in the final stages of purchasing the building within which you reside, and I’ll begin managing the property on August 12, 2019.

The experience is great and I believe it will help me once I start investing in my own properties, especially during the rehab stages of the project.Happy to be here, and ready to learn from this great source of knowledge I recently found.

There are also very local factors that affect each market, meaning the local economy, job growth, demographics, local lending, insurance costs, property taxes etc. and these have an equal or greater affect on prices, inventory, rental rates, etc. in each respective market.For more info on the market cycle and what stage some of the major cities are in check out this article below:https://joefairless.com/what-stage-in-the-market-cycle-is-your-target-apartment-investment-market/

I learned from them and grew past the frustrated, burnt-out LL stage to the nicely profitable and relatively low-impact stage. 

The problem is his mortgage is with a private individual, not a bank (someone did an owner finance arrangement with him).

I have a 32 rental units and plan on moving into apartments I am at the stage where I am going to try and get off/reduce hard money and bank and create a pool of private investors.