So I started trying to get creative on how to create a win-win-win for all.Here’s how it went down:I got the sellers to agree to an asking price of $180k, a full $40k over what they originally wanted.In the offer, we included a seller credit of $34k.This strategy allowed me to cover the extra commission for both the buying and selling agents and ensure the seller got exactly the cash they wanted should they have sold it at 140k.With the seller credit, this reduced my total out-of-pocket expense to just $6k.I used a commercial DSCR loan product with a local bank.

It is true that you have to honor the lease, but in my case, the risk was reduced because it was tenant at will. 

I would check in with @Joseph Chiofalo they lend nationwide and focused on investors and they also have STR specific purchase programs that might be able to reduce the actual HELOC amount required.

Account ClosedNo problem, every landlord has different criteria and having run across too many so called "self employed" it is better for me to reduce my risks by simply say no.

As for selling with 10% down at 8% interest, you now have two title transfers that violate the due on sale clause and add complications to subject to “safeguards” that reduce risk if note is accelerated, if party in possession doesn’t pay taxes or insurance, and of triggering whatever system the lender has set up to notify them when a deed transfer takes place. 

Do you reduce the risk if you occupy the unpermitted unit?  

So, if we were to work together we would focus on locking up your first property and reducing your anxiety.Did I understand your situation correctly?

1st of all corporations own less than 2% of single family homes, they have actually reduced thier share of buying recently, now investors continue to buy up properties, it’s just more mom & pop types, all that said the housing market is in an extremely strange place, I could make strong arguments for prices pulling back, reaccelarting, or being basically flat, the biggest thing I’d advise is looking at you payment, comparing that to what would pay in rent, figuring out how long you plan to be the house and making an decision based on that, generally in that under 400k price point, breakeven for buying a property seems to about 3-5 years if you plan to stay in the house longer than that, bite the bullet & buy, if not rent.  

We couldn't come to terms on a reduced price and I pulled the plug (no pun intended!).

While renting to Section 8 tenants can reduce the risk of non-payment, your property must meet specific standards and pass inspections by the Public Housing Authority.Please feel free to DM me if you have anymore questions or if you just want to discuss further!