Duplex financing advice needed!

[James VanHouter]

My wife and I bought a duplex 3 years ago (FHA) and after we closed we decided to buy 2 new cars so that we could get all the large investments done at once. The plan was to get cars that we can drive until the wheels fall off so we can concentrate on the real estate portfolio the minute the cars are paid for.

There are 5 duplexes on our street and the owners of each are all in retirement or close to it. The plan is that we could buy each one as they come available but we need to get our debt handled first. We figured the one that would be for sale first has a long term lease (8years) with the current tenants so we have time.

Surprise!!! They terminated the lease early and decided to sell now. We really want this house but I’m trying to figure out how to buy it. I need help!!

We have great credit, we have about 10k liquid today but we don't have enough equity yet for an equity loan. We owe $25k total on the cars yet but without them our DTI ratio is ok. I have a family member that will gift me $25k if I need it, but even if I paid the cars off today $10k won't be enough of a down payment.

The ask on the house is 134,900 but I think it’s worth $120-125k. That’s where the numbers work.

The other problem is the current owner wants a cash offer and doesn’t want to hold the paper.

I have thought about maybe having my son buy it in his name (FHA) and we co sign the loan and give him the closing costs. He can live there too, but he just started a new job so it could be difficult. He doesn't have 2 years continuous employment yet. But he does have a good union job that started him at $18 an hour.

I don’t know what to do here folks but time is running out and I need to do something now.

Help please