Owner Occupy Lease Deal
So as a newbie, I want to get started with a property that I'm familiar with. Here's the basics of the deal. Traverse City, MI. Great location close to downtown and Grand Traverse Bay. 700 sq ft, 2 bed 1 bath. Sitting on a slab. Fenced in backyard. Last sold in 2005 for $102,000. Built in 1955. Freshly remodeled interior in 2012, but will probably need a little TLC on the cedar shake siding soon. Maybe an electrical update. Sits on a 7,000 sq ft lot. Zestimate puts it at $117K but I would probably offer in the $105K area.
I have been renting this house for one year and have been sub-leasing the other room. I just signed the least on May 15th for another year. So I have a year to prepare for this deal. My landlord hinted last year that she wanted to sell in another year or so. I pay $735 a month for rent plus I take care of all the utilities. My roommate pays $525 flat rate. I don't mind having a roommate but as my business is expanding I need a home office. I could easily rent this place out for $950 a month with a little bit of work. Rent is crazy high in price and demand in Traverse City.
My finaces: I work as an outside sales rep for a window and door company. I just started in February with a $30K per year salary plus expense account and commissions. (I'll probably make $40K this year, and add $5K-$10K per year after that.) I don't have very good credit due to poor choices when I was younger. About 600 FICO. I know that I'll have to wait a little while to be able to get traditional financing.
I was thinking I could do an owner occupy deal and live there for another 1-2 years (1 year to finish my lease then present my landlord with my proposal, if she accepts, live there for another year to fulfill owner-occupy terms, and be at my job long enough to get traditional financing.)
Sorry this is so long, I'm still new so I wasn't sure what information was pertinent or not. If I missed anything let me know, I just need guidance on how to proceed.