Need 20k out of pocket because of low appraisal

[Tony Mai]

I am in the middle of this deal in Houston TX and I'm purchasing the property through a turnkey provider. The agreed purchase price was 300k. However the property was appraised for 260k which I believe is the true value of the home currently. The seller wants 282k, should I pay more out of pocket? And if yes, is there a way to do some creative finance for the difference? The current rent rates for the area for a similar property is 1800, however the main reason why I am purchasing is there is a corporation lease on the home for 2700 for an additional 4 yrs (lease includes maintenance and property management already paid) Should I proceed with the deal and pay more?

[Jackie Lange]

PASS on this one.  If the market tanks in Houston, you'll be way under water fast.  There are better deals out there.