First Deal- Analysis Paralysis and Unsure If Good Deal

[Jonathan Abrado]

Hi BP Community,

Newbie here! 

I currently have an off market deal under contract in Stamford, CT from a family friend. Originally was trying to do a seller finance deal and they were open to it, but things got a little complicated. 

Background:

Legal 3 Family home with long term tenants and has other streams of income attached to the property off the books, so it cash flows very nicely. Market value is over $800k and they have agreed to sell to me for $780k. The current owner lives in one unit, and rents out the two other units, WELL under market. The issue we are having is the property doesn't "legally" cash flow enough to qualify for DSCR, and, for seller finance, they have unrealistic terms. The owner wants to sell the house, but also be allowed to live there (possibly for free, maybe pay rent, not sure yet) until they close on their next property. They want a big down payment as well, basically enough to alleviate a financial issue, and enough for a downpayment on the next purchase. I've explained its very rare and almost impossible to name your price AND your terms.

So, because I don't qualify for DSCR at the moment, I can possibly get a bridge loan to acquire the property, charge them rent until she finds a place, bring the other units up to market rents, and then refi out within 8-12 months. I was also thinking for selling financing by paying off their financial issue as part of the down payment now, throw a little extra on top as cushion, call it $100k, and then monthly payments towards the purchase price, that will also go towards her downpayment, and then another lump sum 5-6 months later to go towards the rest of her down payment, since the likelihood of her finding a place and closing in 30-60 days is low.

Does anyone else have any other creative ideas on how to either present seller financing to them and not have to find a lender, or a solution outside of conventional and DSCR to acquire the property?

Thank you!

-Jon