Seller only wants cash - how do I finance??

[Albert L.]

Hey folks, bit stuck on this deal and would appreciate any advice. Purchase price: 60k ARV: 80k Rental: 1450/month Property tax: 166 Vacancy: 7% Capex: 5% Maintenance & repair: 5% Utilities: $150/month Insurance: $70/month I don’t think this makes sense for HML/Private lenders given how thin the spread is and I have my hands tied in offering 100% of my own cash, nor would I want to given the lack of equity/leverage I’d have. How do investors close on deals like this? I feel like this will be a similar situation with any off market deal I find.. This could be a fantastic deal if I could find a creative way to give them the cash ... open to hearing any and all suggestions! Thank you!

[Owen Dashner]

Is this a multifamily conversion property?  I have never seen an $80K house with $1450 rents.  If it is a conversion, make sure you factor in higher utility costs (unless separately metered), higher vacancies, and longer time on market when looking at your exit plan.

Also, If the seller wants cash, that may mean that the property would not pass inspections - so make sure you are very clear on the extent of any needed repairs/code issues.  

With all that being said, the income is great for the price.  To take it down with cash, you are going to need a line of credit (or other access to credit), private money, or a partner if you do not have the available funds.  If you are able to line up a short term private loan, you could work on doing a refi with a bank/credit union to cash out your private lender ASAP after you purchase (if that's what they want).