Off market house under contract - what are my next steps

[Dakota Rice]

My wife and I have two duplexes that we have purchased through an agent. I recently grew a relationship with a local homeowner and was able to get his house under contract. He did not want to work with an agent and due to his current situation I have tried to do everything possible to make this a convenient sell for him. I have the property under contract for $235k and the bank did a refinance with him last year appraising the property (without going inside) at $325k. Being that I believe I’m getting a great deal in this current market my approach will remain to make this as easy as possible for him.

I have been self employed for about 7 months now. I figured lending wouldn’t be a little tricky now due to that, but we will have a full year of rental income on one of our duplex on our 2021 tax return. The other duplex is being house hacked and just got rehabbed and rented this last November. At this point I’m unsure how easy it is going to be for us to be approved for and owner occupied loan with our dti not looking as good with me being self employed recently. What are you’re guys thoughts/suggestions on getting lending?

Also, I’m going to order a survey and make sure I can get insurance on the property. I’m not going to do an inspection as I have a good idea from past inspections what they look for, along with my experience with remodeling. I’ve gone through the entire property with the seller and the issue/s with the house are the exact reasons he is selling and at this price. Im going to approach a local bank for financing after we do our taxes in a few weeks, and I’m assuming they will order the appraisal. I was planning on walking into the title company this week and seeing what they can assist me with in terms of the title being transferred and with closing. Is there anything else I need to be aware of and get lined up? Closing is scheduled for May 2nd, but I want to get have everything ready as soon as possible.

Thanks!