Interesting Scenario

I’ve recently come across a potential opportunity but I’m having difficulty finding the best solution. Here’s the scenario;
A tenant has been in this particular property for almost 3 years now on a lease with the option to buy. She pays $700/mo (includes water and sewer). Her landlord takes $200 of the $700 and puts that towards the purchase price. The other $500 goes to the landlord to cover the current note. The tenant originally put down $4000 to get into the property. The landlord wants to sell the property for 79k but has offered it to the current tenant for 59k utilizing the 20k she has already put into it over the years. The other properties in the area are going for 80-90k. The tenant would love to stay in the property but due to credit issues, she cannot obtain a loan for the 59k needed. Can anyone offer any suggestions? Thanks!


Did she try going to a private lender/mortgage broker for the loan. Often times they have private sources of money and are willing to help people clean up their credit. Since mortgage brokers work on commission they want to get as many people approved as possible.

Hey Melanie,

Thanks for your quick reply! She is not quite ready to buy the property on her own yet but she has considered private funds. I think the higher interest rate is scaring her away. The seller has agreed to sell the property to me for 59k (utilizing the 20k the tenant already has in it) instead of 79k. The tenant would like to stay there and continue renting for now at $700/mo. How could I structure this so that she will still be able to utilize her 20k investment in this property and buy it from me in a few years?