Non qm loan to purchase current rental?

4 Replies

Here's my situation: Currently Renting a 1942 bungalow 1500 sf home 3/2 w/ detached garage and ally access in the Kenwood subdivision of St. Petersburg, Fl. My rent is $1500 month. It's a highly desirable neighborhood. My landlord is in her 90's ( only heir is her son in his 70's poor health) and she's considering selling me the property. My hurdle is I have a chapter 7 no asset BK only a year old. I've completely changed my philosophy (or lack there of) on money and have managed to save 25k in the past 12 months. I've looked into non QM loans and the hurdle there is I'll need 25% down. The property manager (his father built this house) is my liaison between the landlord and myself and said she'd probably take 300k for the house. Fully renovated homes in my neighborhood that are comps to my house are being sold between $365k-$475k.

From Living in this house I know the bones are good and it's structurally sound. I also know it needs updated windows and insulation, ac duct work, possibly another unit but, can't tell until new windows and the duct work is redone. There is a new breaker box outside but, as far as the wiring it might be original....The roof was redone in 2012 and it was tented for termites in 2017. The kitchen needs to be updated entirely, it still has the original cabinets. The bathrooms look like they were done in the 60's but, they serve their purpose and the plumbing seems sound. Vinyl siding was added at some point mostly likely the 80's, There is a well on the property and irrigation also, the backyard has a huge banyan tree that needs to be trimmed and its root system has taken over a large portion of a brick patio. This house could be a gem with some $$$$

So with all that being said I feel like this could be a great opportunity! or I'm just getting too excited about the possibilities and ignoring the fact that its going to take a lot to get the stars aligned?

Thanks if you read this far!

Has anyone been in a similar situation?Thoughts??

I may be able to find an investor to buy the property and then do a lease to own with you. That's one idea. Let me know if you want me to look into that further because I'm mainly an agent that works with investors. I know a lot of them and their problem isn't funding... it's finding deals.

See if you can negotiate a seller carry for a few years (your close to 10% down) to give you the time to qualify for FHA or Conv loan in 2-3 years.

Most elderly people in that situation like having an income stream to supplement their retirement and is why they still own rental properties and converting from landlord to lien holder would alleviate the hassle of them having to do improvements and repairs, this could also offset some/most capital gains as well. If she is giving her 70 yr old son the home, he would probably also like the income stream and might even make for a good longer term loan option for you. Owner carry or Contract for Deed seems like a better option for both of you in my opinion, rather than a lease option, but this could work as well.

Originally posted by @Sal Merola :

Here's my situation: Currently Renting a 1942 bungalow 1500 sf home 3/2 w/ detached garage and ally access in the Kenwood subdivision of St. Petersburg, Fl. My rent is $1500 month. It's a highly desirable neighborhood. My landlord is in her 90's ( only heir is her son in his 70's poor health) and she's considering selling me the property. My hurdle is I have a chapter 7 no asset BK only a year old. I've completely changed my philosophy (or lack there of) on money and have managed to save 25k in the past 12 months. I've looked into non QM loans and the hurdle there is I'll need 25% down.  The property manager (his father built this house) is my liaison between the landlord and myself and said she'd probably take 300k for the house. Fully renovated homes in my neighborhood that are comps to my house are being sold between $365k-$475k.

From Living in this house I know the bones are good and it's structurally sound. I also know it needs updated windows and insulation, ac duct work, possibly another unit but, can't tell until new windows and the duct work is redone. There is a new breaker box outside but, as far as the wiring it might be original....The roof was redone in 2012 and it was tented for termites in 2017. The kitchen needs to be updated entirely, it still has the original cabinets. The bathrooms look like they were done in the 60's but, they serve their purpose and the plumbing seems sound. Vinyl siding was added at some point mostly likely the 80's, There is a well on the property and irrigation also, the backyard has a huge banyan tree that needs to be trimmed and its root system has taken over a large portion of a brick patio. This house could be a gem with some $$$$

So with all that being said I feel like this could be a great opportunity! or I'm just getting too excited about the possibilities and ignoring the fact that its going to take a lot to get the stars aligned?

Thanks if you read this far!

Has anyone been in a similar situation?Thoughts??

 Just sent you a PM