Need a loan on a property (really good deal) with a 2nd deed of trust attached!

[Jamie Pickens]

I'm buying the house from a housing nonprofit/city of VIRGINIA BEACH agency below market. They bought and rehabbed it in 2013 using state funds for affordable housing. So it has an "affordability DOT" attached in that amount for another 5 years, then it's forgiven and goes away in 2028. I'm a buy and hold DSCR borrower with strong credit (mortgage score is 730, credit karma is about 770+), great cash reserves and fully prepared to put 20% down. The deal can be done with conventional financing but that's not where I am lol. I retired from my job a couple of years ago (thanks real estate!) and I'm just starting to set myself up for conventional financing if and when needed. I have had been told no several times now but I believe there's gotta be someone who will lend to an experienced, prepared investor and make an exception to the 2nd position DOT.

Purchase price $170k, arv about $300k, 4 bedrooms 2.5 bathrooms, 2300 sq ft, 2nd position DOT $194k (DOES NOT NEED TO BE PAID BACK they just want you to rent to low income family (think sect 8)- it goes away in September 2028), rental comps between $1900-2200. It cash flows while you wait for the DOT to expire and be completely forgiven. House is in Norfolk, Virginia. House also has a 3rd floor attic big enough to add 2 more beds and a bath down the line.