Rents are $1500K. 3 bed, 2 bath SFH.The way we're going to structure it is I will obtain financing for the acquisition plus $5K of the rehab, and my partner will take back a second lien at close and finance the other $40K of the rehab.

unknownBuyer's Possible 97LTV Loan Restructured: ($427k w/ $13k down)It is my understanding if the buyer had committed to a new loan application with a loan amount less than $427k, prior to the appraisal coming in, she could not have obtained a loan denial from the lender in good faith.

@Justin Pera, I am a licensed lender here in Florida.When obtaining a multi-family 3-4 unit with an FHA loan, all units rents, to include the one you’ll be living in, must be multiplied by .75% and cannot be less than your total monthly mortgage payment.

In Ohio it is illegal for an individual to Sell, exchange, purchase, or negotiate the sale, exchange, purchase, of any real estate for another, for a fee, without first obtaining a real estate license.

A financed offer requires the buyer to jump through more hoops to obtain financing. 

If you have no idea where your score presently is, I recommend obtaining your annual free credit report (does not affect your score in any way).

Also, they are EXTREMELY restrictive with how I can obtain these funds, e.g., no gifts (even from wife), credit card advances, etc.  

I mean, you obtain the property free and clear and you're hoping to break even on it?

The owners can hold out because (1) they are collecting positive cash flow on their investment and (2) their interest rates on loans they were able to obtain are at historic lows.

You will learn a lot, save on rent, obtain equity via principle pay down, and if properties continue to appreciate you will be keeping up rather than falling behind.