I Think I Found My First Deal. Now, How Do I Fund it?

[Tommesa Mobley]

Hello BP Family,

I hope everyone's new year is off to an awesome start. There's something I'd like some guidance on. Any feedback will be appreciated. 

I'm just starting out and have been using my time to really educate myself. of course, I've been reading books, watching videos, and have taken up permanent residence here on BP.  I've also been finding properties and then using the BP calculators to analyze deals. 

A few days ago, while practicing, I stumbled upon a property that I'm really interested in. It's a 3BR 1.5 BA Condo that's FSBO. The asking price is $77,500. It's in great condition and ready to move in. During my analysis with the rental property tool, I assumed a $3,875 Down Payment and 1,200 closing cost. For the loan, I used 30 years @ 10%. And a monthly income based on rents in the area for similar units of 1400. This gave me a positive monthly cash flow of $418.89

Check Out the Rental Property Analysis Here

I'd like to pursue the property but am not quite sure how to move from the self-education phase to the taking-action phase. I also don't actually have the down payment and I won't qualify for a traditional loan. I still feel like this is the perfect first property for me, if only I could choose the right creative strategy to make it happen.

It just so happens that in addition to looking at investment properties, I'm also in need of a new home. I was thinking that if I acquired this particular property, I could live there and "house hack" the other two rooms for $700 each. This would give me $1400 in rent- the same amount I would ask for from a tenant renting the whole place. 

I know of several potential tenants and don't think getting the rooms rented for $700/mos. will be a problem. 

Oh yes. I've already looked up the owner's information and he lives on the same street as my daughter, with whom I'm currently living. Yes. I could literally walk to his house from here. Interestingly his B-day is in a few days, just a day after my son's. I know he owns the condo free and clear. I haven't spoken to him yet, so I'm not sure why he's selling the condo. But, I do feel confident that I can build a rapport with him. 

My question is "What then?" How can I present him with an offer with terms so sweet he can't refuse, but at the same time use as little of my own money as possible? I have some ideas based on what I've learned so far but some direct guidance from those of you who've actually done what I want to do would be super helpful.

Peace, Power, and Prosperity

-Tommesa.