How do I structure a deal to attract financing Wilmington NC

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Hi all, this is my first post. I'm a freelance real estate marketer/admin seeking to build a rental portfolio to create wealth for myself and my 3 daughters. I'll be attending my first local meetup Thursday, and I would love some thoughts on how to present the following dealio: An in-law is offering me the 2 bed 2 bath townhouse I currently rent from her. She's offering it at the loan payoff amount of approx. $55,000. Comps in this townhome subdivision is $100,000. Rent is $975-1000 monthly. I qualify for a regular loan amount of $30,000. An investor gave me a copy of his repair estimator and it came out to $10-16,000. I can cut about $2800 out by painting myself, though, and finding appliances under market value. My preference is to keep it as a rental. How might I structure the deal so I can get the deed out of her name and the townhome making money? Do I request owner financing? Hard money? Is there an option where we could continue to live in it a year making repairs, then rent? Being new to this, I deeply appreciate the creativity and experience you can provide so I can share this opportunity with my town's investors. Thank you kindly!

I recommend that you ask what works for your family member.  Some people prefer a lump sum of cash, while others would like to receive a monthly income.  Perhaps she’d like both, where you offer a down payment and make monthly payments.  Additionally, as you mentioned, you are willing to add value with your labor.  Hard money would make this onerous to you, similar to making payments on a high balance credit card.  

In this situation I have presented three offers to my sellers, and I educate the benefits of each one to the seller.

-A lease option is fairly close to what you have been doing already...renting with an option to own.  She keeps the deed until you satisfy the requirements that the two of you set out in advance.    

-A full price, conventional offer is where you would qualify for and complete a mortgage application and the associated inspections.  You don’t appear to qualify for a large enough mortgage at this time.  I’d work on my credit and ability to qualify for a larger mortgage, with intent to refinance in the future. 

-Seller finance.  She might receive a down payment, transfer the deed, and collect payments at a specified interest rate until the house is paid off.  You pay for taxes and insurance through your own accounts. When I have used seller finance, the title company sets up escrow to collect my payments and distribute them to the seller.  

She’s already willing to be “creative” so I’d ride that horse off into the sunset.