Seller carry a 2nd on a conforming primary residence purchase

[Brian G.]

I have been renting the condo I am living in for a year and the seller has agreed to sell it to me. Her realtor is representing both of us. The appraisal just came back $50k under contract price. As far as I can think of these are my options:

1. The seller can carry a note on the condo for the 50k difference
2. I can give the seller a 2nd on one of my rental properties for 50k as security for a note
3. I bring 50k cash to close ( I don't have $50k additional cash )
4. She reduces her sale price to the appraised price (not likely )
5. Roll the dice and try a local lender that the realtor suggests (realtor has asked this several times)

I have asked the seller to reduce the sales price to meet in the middle, but for discussion lets assume the price will not change.

I haven't talked to my lender about what I can do but I thought I could get some ideas here before inundating her with requests and questions.

Some general notes. I can afford the payments on the 50k note as well as this mortgage, even my lender would agree that my DTI would still be fine. I hope to live in this condo for many years, and if Im upside down for some years I wont be too bothered, its just nice to have a predicable housing payment. The market is Santa Barbara, CA. My lender is out of town but Ive worked with them on 2 other loans. They are the best Ive worked with. I am doing a 20% down conventional loan.

I have bought 4 SFRs in other markets in the last few years but this situation is unusual for me so I would appreciate any insights. Thanks!

[Mark Gallagher]

Brian G. The elephant in the room here.. Why would you want to pay $50K over appraised value?!!