May lose my first deal...Help!

[Tonya Weathers]

Fellow BPers I need your help! I am so close to getting my first deal in the DFW area that my realtor has been negotiating for the past few weeks. It's a SFH with a current, long term tenant that I would like to keep ($96k, $135k ARV). Originally, I was going to get a HML (for purchase and rehab) and kick the tenant out so I could BRRRR it. However, I thought it through and said why kick out a good tenant? That makes no sense. However, now 2 weeks into discussions, the owner is adamant about cash only. How can I do cash only with a short-term loan, rehab it, and still keep the tenant? Any suggestions?

[Jeff Wallenius]

@Tonya Weathers This is where your realtor needs to come in and really work for you. They need to explain to the owner that a HML is really the same as cash. Closing deadline will not change and the deal will not be held up for financing. All of this assumes your HML is ready to lend to you, and more importantly on this specific property. You can also have the HML write a letter stating no appraisal is necessary (mine does not require one) and closing timeline to be 7-10 days (most can close quick).

Best of luck!