The payment would be a wired transaction where we sit down with his attorney and title company to sign rights to the home over.

They signed an 18 month lease with 12 months remaining.

I would like to do an FHA loan or possibly have my parents co-sign but is there a better way to do it?

I would give the current occupant 10 business days to sign a lease with you and, if he does not, file the ejectment lawsuit.

If you finance it with an owner occupied loan, you’ll sign that you’re going to move in within 60 days and owner occupy for usually at least a year.

If both parties agree on terms (price, etc), you could always hire a RE attorney to go over with and explain the contract to the seller before he or she signs for probably a 1/2-1 hour consultation.

He viewed the paperwork via DocuSign the same day, but he did not sign.

So can I still sign a lease and set up a section 8 tenant before I have done the application or inspection? 

No sellers disclosure was signed by me or the seller, nor presented at the time of closing.

The financials are as follows: Purchase Cost:  $247,000Cash Down: $37,000 (15% Down) + $2,500 (closing) $39,500Mortgage + Tax + Insurance: $1,548Monthly Rent: $2,250The house already had tenants who were signed on for the next year we closed July 25th, their new lease started July 30th and runs through the same date 2019.