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?
Is it because they aren't counting all of your rental income? Do you have rental income more than 2 years?
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
@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
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