Hi y'all! Hoping the creative minds of BP'ers can help me with some info and strategy.

I just found a property for sale on the MLS- the EXACT house I've been looking for for months to house hack. At a low enough price point for its condition and location that I know there's gonna be a catch.

A little background: I own 2 commercially-funded properties and one I paid for in cash, and I've never taken out an FHA loan. Unfortunately, I can't qualify for one for a few years as I work to bring my Covid-decimated self-employed career back to life. I've decided to settle in Austin, TX. I have rented here for a year, been studying the market, and started making offers on off-market houses I can fund commercially, hold as a rental, then refinance into conventional to live in once I qualify.

Recently, though, I decided to partner with another investor who would be able to co-sign for me. We could get the cheap loan, hold for 2 years as a slow flip, then sell after at least 2 years to avoid capital gains. And I'd have a home! So this great home pops up, needing just the right amount of cosmetic reno to be perfect, at a mysteriously low price point. So, turns out, the current renters have a lease in place for another year. I'm trying to understand what is actually true/legal about that situation, and how it might affect demand for the house and my plans as well.

Am I right to assume that any investor coming along looking to commercially fund this home, even straight into a 30-year rental mortgage, would not be able to do so without losing money every month? $450k purchase price, current rent is $2000 which is way below market- I'm paying $2150 for a way less great house and I'm very jealous!! It could easily be $2500. So that makes me wonder what sort of laws are in place in this situation- I do STR's and have no idea what long-term rentals are like. Does a new landlord have to keep the lease in place as is?

If I had to buy this house with commercial funding, the whole deal goes a bit sideways, because it's way more expensive money, and while the MLS price is VERY good, it's less good without the FHA. I can't imagine covering a new loan with current interest rates at that rental price.

What are some creative ideas y'all have to acquire it, and what are your thoughts, as long-term rental investors, on this kind of deal? The house is great and in a sweet neighborhood and will be a safe investment. Is it a big turn off to inherit tenants? No biggie? I appreciate your thoughts, thanks!