Need help with purchase of condo

3 Replies

Ok, here is the situation... I am trying to purchase a condo for my primary residence. So far, I was declined by traditional financing (portfolio loan) because my DTI ratio was too high, though I have rental properties that + cash flow :-/. Other factors were the loss i claimed on my tax return, and the HOA with this condo ($435 monthly).

I am asking the Bigger Pockets of ways to get this property? I know the owner is motivated and wants to get rid of the condo. The traditional way; the negotiated price ended up at 218K, but of course like i said previously i couldn't get financing through the traditional way

I offered the lease option to the owner with his original asking price of 227K, 4K down, 0% interest, amortization 10yrs, balloon at 5yrs, but pay off complete loan around 2.5 yrs (amount i qualified for through traditional financing was 180K). He stated he wants everything out of his name as quickly as possible.. again motivated

What are others ways to get this property? I have been reading up on subject to deals. I think this will address his need of dumping the condo, correct, though his name will still be on the loan? There is a mortgage on this parcel, but i don't know what it is currently. In order to structure a subject to deal what is needed to make it work, and how should i approach him? How well does a owner finance work with an existing mortgage? would this be a route? Are there other ways? 

I am assuming I would need to know the current loan info, but what if the current loan info doesn't match what he is trying to sale it for? How can we assure him a deal won't affect the comps or he won't lose any equity that he may have?

James Sullivan, Sullivan's High Aspiration | 334‑220‑4054

Yes, they are counting my rental income. Yes, I have had rental income for more than two years. I already have someone lined up to move in my current residence, which will + cash flow $650 before 50% rule (house built in 2012). I don't think they counted this as income though. I tried but they never responded. I will ask again this week

James Sullivan, Sullivan's High Aspiration | 334‑220‑4054

@Dawn Anastasi  I am still trying to work the deal out. The seller is not an investor, so i will be explaining the ins and outs of a lease option, and or subject to deals etc... I only qualified for 170K but the selling price is 218K. Are there ways of taking out a 2nd mortgage to cover the 48K difference and pay that to the owner over time? I am just trying to come up with some solutions 

James Sullivan, Sullivan's High Aspiration | 334‑220‑4054

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