4 Replies

Hello Bigger Pockets,

I would love to get some of your expert opinions on this one.   I am under contract on a duplex that I purchased for $61,000.  The deal is set to close on November 29.  The duplex is in an area that has been heavily gentrified in the last few years. It is very close to downtown Cleveland.  There is a lot of new construction and development in the area.

The underwriter looked up some of my tax information yesterday and found out that the IRS does not have my 2016 returns.  They were filed and my taxes were paid. My accountant said they are very backed up.  I am not sure why they don't have my returns.  The bank has my tax info but they have not been filed at the IRS.

There is a long-term tenant in the bottom unit that is paying $450 per month. That will basically cover the taxes, mortgage and insurance. The plan is to leave that unit alone for now. The upstairs unit needs some rehab.  I am planning on redoing the kitchen and bathroom, and putting a coat of paint on everything.  There is a very large, unfinished attic that will be turned into a large bedroom and office.  Based on the rent in the area, with three bedrooms and everything updated, I should be able to get about $1000 per month in the newly renovated unit.  That brings the total to $1450 in rent on a $61,000 purchase plus another 5-10k in rehab costs.  

What would be the best course of action if the traditional bank funding does not go through?  It may be fine but I would like to have a backup plan just in case.



@Chris Walsh Three options I can think of:

1. Local bank or credit union with a portfolio loan.

2. Hard money for as much time as it takes to get your tax transcripts back from IRS.

3. Partner with an investor / private lender for a short term.

Good luck!


@Chris Walsh I would call the IRS and see if they have the 2016 data.  If so you can have them fax a "notice of Record" directly to you or your loan officer

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