Posted by Katie on September 02, 2003 at 21:02:12:
If the seller is inflexible on terms, that leaves you with figuring out how to manage a cash deal. Your closing costs and pre-paids will, as you said, use up most or all of your $7K. I strongly advise against trying to lie to a lender about contract terms. That’s fraud.
You need to come up with ~$22K for a down payment. Do you have a home equity line available to you? Borrowing against credit cards is out, because you’re going to have to provide proof of funds if you go conventional.
Would the building lend itself to converting to a co-op or condo? If so, you could put together a business plan for conversion and possibly get the whole purchase price rolled into a convertible bridge loan that shows the lender realizing repayment inside of 6-9 months.
Bear in mind that $900 a month is not a lot of margin on an 8-unit deal. The numbers you gave reveal an average rent of