Thanks @Joseph Coleman...
4 bed 2 bath lakefront property in the Finger Lakes region of New York (upstate New York). We have it under contract for $695k, and comps in the area range between $630k-$780k. The current purchase price puts us right around the average for these comps. So there's a chance for instant equity if it appraises for higher, but of course that is not guaranteed until we actually move forward. With the investor who dropped out, we're now down roughly $40,000.
Investment strategy: short-term rental on Airbnb and VRBO. Data from Airdna.co estimates that similar properties in the area rent for an ADR of $581, with occupancy at 58% and 70% for the 50th and 75th percentile, respectively. Our local agent and STR management company have validated this data.
So my current situation is trying to bridge the gap that the investor drop-out caused so we are still able to close the deal. I am hesitant to use a hard money lender for such a situation, because it is too short-sighted and we are looking at a minimum 3-5 year hold period. Thus, short of finding another partner to join our deal within the next few days (not going to happen), I see my remaining options being: 1) find a 15% down loan product, 2) take out a personal investment loan to make up the difference, 3) move forward and hope that the house appraises for higher and that our LTC works out to be 85%.
Option 3, to me, is wishful thinking and not a solid investment strategy. Option 2 adds potentially too much risk, and also offsets our credit scores and DTIs to levels we do not want. Thus, Option 1 seems to be the way to go (if at all possible).
Any other advice or suggestions? Very much appreciate your help and guidance!
Thanks,
Ross