investment property purchase advice

[Lee Schram]

Hi BP,

Looking for suggestions on how to purchase an investment property should this loan not close.

Here is the situation.

I am under contract on a condo in Chicago as an investment property.  Purchase price 78k.  Rental price should be 1200-1250.  I would be putting 20% down and a 5% interest rate.  Seller is not open to seller financing which I offered first.  She wants traditional sale.  So I've gone the traditional bank financing route to purchase.  The deal is held up now because the building the condo is located in has a high amount of units that are rented out.  over 50% rented.   So the lender has told me that in order for the loan to close Fannie Mae would have to sign a waiver allowing me to purchase the unit as an investment.  Should they deny they waiver, I don't want to pass on this deal because of the potential cash flow of the property.

Does anyone have any other suggestions on how to purchase this property?

thank you