Help me out of my contract!

[Zack Adams]

There's a cute little duplex at 339 E Blaine ave in Salt lake city. I have it under contract right now for 235,900 with them paying 5k towards closing (closing deadline of April 15).

It's rented right now, both units for $950 a month. So current cap rate is 9.66% Each unit is 840sq/ft, 2bed and 1 bath. I have a fourplex down the street and rent nice updated units for 1100 (820 square feet, 2 bed 1 baths). This unit is larger than my fourplex units and has a two car garage for each unit so will likely rent for more than 1100 per month.

This unit needs a facelift, about 20k to get the rents to 1100+. The building has also settled, so it has a slight but noticeable lean to it (the whole foundation settled together so there is very minimal cracking), an engineer has reported it's done settling; But i was planning on lifting/anchoring the building. I had a detailed estimate come in at 27k and used this to heavily negotiate the selling price down. Now it rents fine as is, so the foundation lifting isn't completely necessary.

So with $230,900 to close, then 47k in repairs, you're looking at $277,900 total. The after repair value will likely be north of 340k which gets you in your 75-80% ARV.

I've done a lot of due diligence on this property and can send you all the estimates, engineering reports, and home inspections done.

I'm excited for this deal and it sounds like it's going to be great for me but .... I am having issues lining up the FHA financing, so here I am trying to see what other ideas might be there for me. What would ya'll do? Should I use a hard money lender? Find someone to assign the contract to? Or find a partner?