Investment Property opportunity assistance

[Ryan G.]

Hi All, and thank you for your help in advance.

I have an opportunity to purchase an investment property that is NOT ON THE MARKET yet. Here are some of its vitals:

- Zestimate: $345K (I know this is typically 10% or so high)

- Last Sold: 8/2021 for $281K

- Roughly 1400 sqft

- Some cosmetic work needed

- $25K left on solar loan

- The home was build in 2004 and it looks like it has the original AC unit, so I am assuming that needs to be replaced too.

- 2 story house with very small rooms and and 2 steps down, imminently as you enter the front door.

- Gated community and in a reasonable HOA.

- The home is 2 payments behind and already got a letter from the lender about future foreclose.

There are two options I have offered and I want to get a check on here if I am off base with my offer or if I need to push harder.

Option 1: The loan that the owner has is an assumable loan at a 3.875% rate and still has about $265K. I wanted to offer him about $50K over what is remaining on the mortgage and go through the 60-90 day process to assume the existing mortgage. That will have me in at about $320K plus the solar loan. The owner representative (not an agent, just family) seems to not be a fan of this option because he does not understand it.

Option 2: If option 1 does not work, or they are unwilling, the offer I see as valid for this property to make sense is about $290K plus taking over the solar loan. I a factoring in the replacement of the AC unit and potentially the water heater, and the cosmetic thins (I would do myself) to get it to rentable standard. I know this seems low, but the way I see it, this is how much the buyer would potentially walk away with if they posted it on the market and minus all the fees and concessions so I am getting them to that number with none of the hassle and removing the issue of a looming foreclosure.

Lastly, if I was able to get this home at that price below market, are there loan options that require little to know money down, since it is at/below the 85% LTV?

I would appreciate any insights and additional things I may be missing. I know that I do not know everything, and I do want to make this deal work, if I can.