Trying to get creative here - Thoughts?

[Rob Randle]

I wanted to get approved for a FHA loan on a triplex for $370,000 that I am interested in. After speaking with lenders, the most I can get approved is for $325,000. They also can't count the income on my first investment property because it is not on my tax returns. So they are looking at an additional $900 in debt (which really isn't the case because I rent it for $1300). I will be moving into the smallest unit in the property.

I have a co-signer that is willing to help me to get into the property.  However, they don't necessarily want the responsibility of having the property if something were to happen to me.  

My creative solution to this problem:

1. Purchase home as co-buyers.

2. Co signer sells off their half to me so I am the sole owner.

What do you guys think?

Numbers if you are interested:

Property: Triplex

Area: High End Area, SFH's that are 3/2 or 4/2 are mid 300's to 400k.

Financing: FHA 3.5% down at 3.75% interest rate

Units / Rent: 1br / $950, 2br / $1200, 3br $1500 (currently rented for slightly under those numbers but they haven't been raised in 3 years)

My max offer on this possible looks like 370k with 10K back in closing costs

Down Payment + Closing Costs(5%-10k back) = 11,100 + 8500 = 19,600

Cash Flow = Rent - Mortg - Insurance - Tax - Maint(10%) - Vac(5%)

3650 - 1665 - 100 - 880 - 365 - 185 = +455

Cash on Cash = 455x12 = 5,460 / 19600 = 28%