$$ WILL THIS WORK? (2 for 1, or 50% Paid, then Use Equity?)

[John Winters]

Greetings BP,

I'm a HS teacher & NEW investor in PA. I see a few property packages and a single-family properties of interest, some above the FHA caps, but worth what's being asked. Of course I will only buy a property or package of properties that will pay for themselves, so I am not overly concerned with paying for them over time, & I am approved at the max FHA rates for single family & multi-units. However, to pay for properties over the caps (package or single) -- with motivated sellers -- would something like this be possible, if agreed upon?

**Single property:  Buy property at half-asking price with an fha (or conventional) loan.  Make it 'subject to' me taking a loan from the instant equity to pay the seller the other half.

**Property package: Pay the price of one property at asking price with fha (or conventional) loan, seller agrees to deed both/all properties to me, 'subject to' me using instant equity to pay the remaining price for the remaining original asking balance.

Is this legal & workable if the seller agrees?  Are there any challenges/obstacles to this approach, if agreed upon?  (I know the lending institutions will typically lend a percentage, I think ~80%, of the appraised value.). I feel like there must be a 'catch' to this approach - something obvious (or not) that I'm missing.  However, if this is possible, great!  I'm guessing a real estate attorney would be the best person to draw up this type of contract? I'm new & learning, and I appreciate all support and tips.  Btw, I'm okay with using the current equity, as long as the cash-flow is positive. Thank you for any and all insight, even if it may seem obvious!