My mom and her two sisters inherited my grandmother's home 18 months ago, and it's been sitting empty since. It's appraised at $180K and sits on 5 acres. 4bd/2b 2000 sqft. The area was once rural, but is now on the cusp of suburbia as the metropolitan area expands. 3 acres of the lot could easily be split and sold to developers for $20k quickly, or up to 50k with patience. The bones of the home are great, but the interior is outdated and some CapEx (A/C, siding) may be necessary soon. I believe they would take an offer from me of $145k with bank financing, potentially less. It should rent for $1200 easy as-is, $1400 with a little work.
I don't know if I can get bank financing. I'm 22, live about 8 hours away, have just started my first job, and don't yet have enough savings for a down payment (saving $800/mo currently). I was hoping to get into real estate soon anyways (house hack FHA/203k), but not this soon. I'm very familiar with the area, visit frequently anyway, and would have trusted 3rd parties to check over the property manager.
The other problem:
They have zero real estate experience and are likely to reject financing they don't understand. I need creative financing that benefits them as much as me. Also I need a way to educate/convince them to take it.
What financing options might I pursue to get the house? Is it worth it?
I was thinking of asking for owner financing (30-year rate, 140k, 4% APR) for 5 years (or as long as possible), then have the remainder of 145k or 150k due at the end of the 5 years. I'm assuming I could get financing because: 1) it appraises at 180k, 2) I could probably sell the land for at least 40k within the 5 years, 3) I'd have a history of cash flow, and 4) I have 800+ credit. Also, I could use the proceeds from the rental to hack a 3 or 4 plex (currently would only be approved for a duplex in my area).