Calling any and all CREATIVE thinkers. I need your help!

[Nathan Richmond]

So there is a great 90 year old property that I'm wanting to purchase. There is a house on the property along with a 2 bedroom apartment above and a 1 bedroom apartment behind the detached garage. I'm wanting to house hack and live in the house. The apartments are already rented. I easily qualify for the purchase. (I also already own 2 SFR that are rentals)

     Anyways, here's the problem. The apartments have been there for 60 years. The city is perfectly ok with them being rented, but they don't want to "permit" them on record.  After a little massaging, the city has given the current owner a permit to improve one of the apartments, but not the other.  So now, according to new laws that went into effect on October 1st, I was told by the mortgage company that they can't finance a property if all of the units cannot be appraised.  And with only one of the extra units being permitted, the appraiser can't appraise the 3rd unit.

Any suggestions?  Would love to hear them.  Maybe a private lender?  I wonder if I can get it under control with a private lender and then after some seasoning get it refinanced.

Thanks for any time you take considering my scenario.  😜