The issue presented itself about 30 minutes before we were scheduled to sign and closed the sale yesterday, HUD showed up with a partial claim that I received during the COVID-19 pandemic which brought the closing amount to $289,000, thus putting everything upside down, no cash from the sale and I would owe money.

One reason could be that not all appraisers consider basement space to be "general living area" (GLA), regardless of the building codes.To overcome this barrier, you can:Provide Documentation: Present the city’s approval for the egress window and any other relevant permits or certificates that show the space was done according to code.

Unfortunately, I dont think I can barge into their unit without them present.

Yes to everything @Nicholas L. said and also know your financial situation and have your finances in order to present to a lender.

Also, expect deferred maintenance.Your #1 concern should be, can you fix the problems the seller has or will you eventually have to dump the property also?

I want to approach the seller on a seller financing opportunity but don’t know much about it, and don’t know how to present to seller.

Then if it grows and an opportunity presents itself in real estate then I may consider pulling the trigger on a new deal.

If you’re feeling overwhelmed, consider consulting a local property manager who can help you plan for the deferred maintenance and set up rental operations smoothly.

You could also present the deal to other local investors or private lenders who might jump at the opportunity, given the attractive terms.

This increased the average density by 50% and opened up opportunities for multifamily and ADU to be built on almost all residential zones.In a situation like this, new opportunities are bound to present themselves to homeowners and to investors.