Creative solutions for financing

[Erica Gregory]

Hello!

My father has a rental property that he wants to sell but he has an outstanding $50k HELOC on it. He wants to sell for $75k but after a market analysis is looks like he should sell for $50k-$70k (Max). The appraisal hasn't been done recently but about 5-10years ago it appraised for $103k.

I have never purchased a home or rental property before but I want to buy it from him. The house is decent, fairly new appliances, well cared for and has a section 8 tenant in it that pay $1092/mo. It’s not the greatest of neighborhoods and it’s not in an up & coming area so I don’t anticipate any appreciation.

I don’t have great credit and only $7k as a down payment. Is there any way for me to purchase this rental from him?

[Brit F.]

@Erica Gregory, a property that lost 30-50% value in the last 5-10 yrs, no anticipated appreciation in a B/C neighborhood, and with an inherited tenant....it sounds like a risky/poor investment.  Are you sure this is how you want to spend your money? (Maybe I'm missing something here?)

If you're heart is set on this place, have you and your father discussed seller financing? If the HELOC balance can be paid off and then closed, and if there are no other liens, it would be pretty straightforward to have your father act as the lender - presuming he doesn't need the lump sum cash from the sale.