Lose $3,000 or is there an option?
I'd really like to seek the guidance of some more veteran BP'ers on a situation my wife and I are in.
Last year, we moved into a home under a purchase and sale agreement with a significant down payment/earnest money that was supposed to be used for the purchase of the home when financing worked out. We were originally going to get the mortgage to close Early to mid-Feb of this year after we could demonstrate a year of rental income on another property we own for a conventional loan.
Since having signed on this home, unforeseen circumstances have really pulled us toward moving to Missouri, which is thousands of miles away. Having limited cash as it is, I'd hate to walk away from the down payment we made.
Options as I see them:
1) Walk away, let owner keep the down payment, and they will again have to assume the risk of putting the home back on the market or finding a renter. Not only do I deplore this for what it does to us financially, but I would like a better scenario for the current owner as we try to operate in a manner where our transactions of any sort are mutually beneficial.
2) Test the market with some potential buyers who own neighboring buildings around me that they rent out to tenants. This home is zoned multi-family already. We were interested in buying it because we have adopted many children and need the space. I'm going to reach out to these folks this week, but would have a stronger negotiating mind if I had a little guidance. This is my preferred option. See below
3) Buy the home, and either try to sell it through a realtor or rent it out. This is not ideal from a standpoint of having to trust folks to help us turn it around from thousands of miles away and I'm unsure if I could get financing for the home we need in Missouri if I rent out this home + another home we've been renting out.
If I choose number 2, I'd have to figure out a few things
1) Whether I need to wait for conventional financing as hard money might be better if I intend to flip it.
2) I've never sold a home, so I would need assistance on knowing my costs and doing the math for the above to work out.
3) Can I even pursue potential buyers without having the title in my name? I have a can-do attitude sometimes that gets me into trouble
I apologize in advance if this issue is answered elsewhere, but I atleast wanted to get the ball rolling so time can be an ally instead of a foe in this
I'm sure there are many questions I should be answering but the general gist is I have atleast 2 months, possible as many as 5, and I want to take advantage of that and walk with wisdom and hopefully have a situation where the current owner, us, and hopefully a new buyer all make out positively.
Thanks in advance to all who take the time to read or provide feedback