Buying a House Contingent on Selling- Financing Question

[Allie Dattilio]

Hey friends! We bought our first home 5 years ago, slowly fixed it up and are ready to sell soon! We have about $100k equity in it, based on a recent appraisal. It is not yet on the market.

We found a home that I think could make another really great slow flip opportunity, but trying to figure out the logistics of buying/selling at the same time.

We would not qualify for financing to carry both mortgages simultaneously. If we make an offer contingent on selling, that the seller accepts (they are motivated so there’s a good chance!), Will the bank still factor in our current mortgage as existing debt?

Any other suggestions to make this work?

Current home worth $200k. We have $100k left on mortgage.

Would hope to get new house for about $325k.

Max qualification without current mortgage factored in — $375k.

Potential to house back/rent the basement for new home, too. Approx. $1k/monthly rent. Not sure if that can factor into things to help, also?

Thanks!