Lending problem I can't seem to figure out
Hello BP Community. I pride myself in being self-sufficient, creative and resourceful when it comes to figuring out "how" when trying to overcome a challenge. Right now though, I'm running into a bit of a wall. In 2016, I put together a deal for two smaller 2-bedroom properties in the east end of Richmond, VA (technically, east Henrico). The transaction was a lease purchase where I am paying the seller slightly more than he is paying the bank at a slightly higher (0.25%) interest rate. The agreement is a two-year term with an option for a third (at a $750 extension fee).
Now I am trying to cash out the seller and get my own title and I've been actively talking to lenders/brokers and it seems like every product has some aspect where they can't lend to me. Keep in mind I have also have two other rentals- both with great equity as well- that I'm willing to lump into the loan or refinance individually. I've hit the following snags when trying to get the deal done:
1.) The lender with a lease-based, no doc product won't lend to me because the properties will only appraise at $80,000 and their product requires a minimum of $88,000
2.) Another lender won't loan to me because their product requires the properties be 750 sq. ft. or more. One is 696 and the other is 624 (my other two are much larger).
3.) Most lenders simply look at my tax returns and because I'm a 10-99 and have changed my income source in the last year + write off a lot, they won't lend to me because my schedule C shows a loss or close to a net zero.
Does anyone know another route I can take to refinance these two- or maybe all four- properties? Please keep in mind I make decent money and have a good credit score. Thank you in advance for any referrals, advice...