Deal or no Deal? Need financing ideas

[Paul Choi]

Howdy folks!

So a friend of mine, who is not into REI, has sent me a couple of off-market leads through his family/friends, which is great but I'm currently low on funds to close the deals. I'm in the middle of SFH rehab for a flip and cannot refi my other property because I will be 1031'ing it early next year.

First, is this a deal?

It's a SFH, 3/2, great condition, paid off with a tenant. The owner is an older couple who is a tired landlord and wants to sell it since they are into their senior years. It could sell as-is for around $270k. If I spend some money (light kitchen/bathroom remodel, laminate flooring, paint) ARV is around $290k-$300k, confirmed by my agent and myself. It's a not a high end home, probably mid level, nice blue-collar neighborhood. I negotiated her down to $230k cash but this took a few months so during that time, I already bought another house to flip and shifted funds around. The spread is much less than I'm used to working with but there is still room for around $20k-$30k profit after expenses and rehab. I know..not much but better than $0 :) I offered seller-financing with attractive terms but she just wants to cash out.

I have been racking my brain on how to finance this. She won't do selling-financing, tenant doesn't have the funds purchase, starting asking friends/family to see if they want to be passive investors but have not had any luck yet, I have a HML I work with but need ~$50k down and points eat into the profits on such a smaller spread. Traditional bank lenders - same thing, need downpay. I'm not going to househack because I already have a house and family.

Any ideas? She said she will just list the house on the MLS with an agent early next year if I don't take it. I can gamble and wait till I sell my flip but not sure if the timing is going to be right. Got another similar SFH off-market deal in the pipeline and would like to get financing ideas in place if that deal looks good.

Thanks!