I found a Real Estate Investor who was in the process of liquidating his properties. His last property was a duplex used in Section 8. The property was being taxed at a value of $40,000 (his purchase price), but had a remaining mortgage of $30,000.
The deal was for an assumable loan on my part with the bank. The bank would not do an assumable loan, so we drew up paperwork for a loan in the amount of $30,000.
Here’s where the deal has come to a stop. The appraiser decided that since we were purchasing for $30,000 that the value of the house was now $30,000, instead of the $40,000 that we were hoping for. Now the LTV Ratio is above the 70% mark that I needed to keep me from putting my own money into this deal upfront.
Without investing roughly $7,000 as a down payment, does anybody see any solutions to keep this deal alive as we intended it to be?