Landlord looking to sell, Im pre-approved to buy, one problem.

8 Replies

Hello, all!

So here is the situation... I'm currently renting one side of a duplex in North Texas. I happened to be browsing one of those real estate marketplace sites (zillow, realtor.com, etc..) looking for a multi-family unit to buy and I come across the exact property that I'm currently renting, listed for sale! Thinking this would be the perfect property for me since I'm already living here, I immediately call my bank and see if I qualify for a loan at the amount the owner is asking. Well, guess what? I get pre-approved! Having a feeling that everything is falling into place a little too easily, I read further into the listing and realize the owner wants to sell this property as a package with 4 other unit. Smh. As I can't afford all 4 units (all priced the same), I call a realtor and ask to see if the owner is willing to sell the units separately. As you can guess, the owner says all or nothing. Not wanting to give up on owning this duplex, I call family members to see if they'd be interested in buying a unit as well, and together, the best we could do is 3 units. So here I am, so close to buying, yet so far away. Does anyone have any other suggestions on how I can complete this purchase. Thanks in advance.

@Brandon Thomas Maybe consider rent with an option to buy all 4. This will give you a year to figure out how to buy all 4. A portion of the rent you pay will be going towards your down payment, which is an added bonus. If after the year you choose not exercise the option, then your worst-case scenario is that you just rented for another year... not that bad.

See if you can find a lender that will approve you to purchase all as the lender you're currently with may not have multi-family programs available. Local small business banking may be more suited to helping you or look at lenders networking or advertising here on this site. The owner should be able to provide current gross rents if not more detailed data to help you determine if it's an option.

Originally posted by @Joe Aiola :

@Brandon Thomas Maybe consider rent with an option to buy all 4. This will give you a year to figure out how to buy all 4. A portion of the rent you pay will be going towards your down payment, which is an added bonus. If after the year you choose not exercise the option, then your worst-case scenario is that you just rented for another year... not that bad.

Thanks for replying!  Good idea, but i'm not sure if the owner would be willing to wait that long. Also, im not sure if I'd be able to come up with enough capital to purchase all 4 units in a year's time. However, I do like the idea of creating more time to find a solution. I may consider trying this. 

Originally posted by @Lynn M.:

See if you can find a lender that will approve you to purchase all as the lender you're currently with may not have multi-family programs available. Local small business banking may be more suited to helping you or look at lenders networking or advertising here on this site. The owner should be able to provide current gross rents if not more detailed data to help you determine if it's an option.

Thanks Lynn! I haven't considered trying local small business banking. Like you said, they're probably more likely to provide information and resources specific to the area. I will definitely look into this. 

Originally posted by @Angelou Masters :

Brandon how did things work out for you?

Thanks for checking back! Unfortunately the properties were sold before I was able to come up with a solution. Im still currently on the hunt to find something that works for my family and I. Thank you and everyone else that contributed to this post.