Buying duplex (needs rehab) - can't get conv. finance / no down

[Carly Turow]

Hi BP!

Next door to the duplex I live in, is a duplex that may be up for sale. I met the owner and he's sick and said he wants to sell, but also sounded like he was really kind of set on what he thinks he deserves (300k). I haven't seen the inside, and it's been vacant 10 years. Seller paid off mortgage. He's got it filled with stuff (some he wants, some he doesn't).. it's been a place where he stores stuff. Seller has been hit up frequently by a local flipper but seller seemed resistant because he believes the flipper wont offer what he wants for it.

I actually posted on FB in a wholesalers/cash buyers group about this possible opportunity just to see if buyers may be interested if I get it under contract. I spoke with one buyer that gave me the price he'd pay (and this buyer is right, it's far, far less than the 300k the seller wants). It likely will need anywhere from 40 to maybe even upward of 100k in rehab.

Out of curiosity, I put the info into the BP rental calculator because I would like to own a rental in my area of South Florida for both cash flow and appreciation. I entered the general rent for this area and according to the BP calculator this would have a cashflow of almost 1k/mo... if I was to buy it at the price that the cash buyer was shooting for.

The thing is.. I can't get conventional loans due to lack of W2s to show for the past 2 years. I don't want to go the hard money route.. and it's likely the seller won't want to do seller financing. I know there are investors that would possibly be a lender.. but how does that work? Do I reach out to investors and ask them how we can work together on this?

Of course, I would still be considering wholesaling this to the buyer that was very interested. I would like to leave both options on the table. I thought I'd ask on here to see if I do even have an option to buy, given that I don't have money for a down payment, I don't have much capital to use for holding costs, and definitely not money for rehab.

Thanks for any feedback guys! So helpful