I have found 12 properties for sale by an elderly gentlemen 13 cash flowing (11sfh 1sfh+apt 1dplx)only 1 not rented. They are listed with a realtor. My town is around 12k pop with a 90% rental rate. Not much going on in geographics except the oil fields and prison. Not any sign of sub-prime stupidity around here. My question is for the experienced creative buyer. How would you approach this deal? the #s are $270,000 for all properties.(before negoications) rents $33,600 per yr. I could new owner rent raise to bring it up another $4,000 per yr. so possible $37,600 in rents. Now because he is elderly and i hear poor health, + the realtor I wonder if L/O isnt the best approach. BMCC isnt an option for me with out P/L or H/M. Please give me your detailed feedback.
Thanks.
You found a sick and elderly seller willing to do an L/O?!?!!? I’d go for the L/O and get those properties off the market and into your control.
How about asking for owner financing? The owner gets the landlording issues off his plate, but still gets his monthly income from your loan payment. What if you offer full price ($270k) payable in annual $18K installments, or $1500 monthly installments over the next 15 years.
Be aware that if you become the new owner, you must honor the existing leases and the lease terms. You can’t raise rents until the current leases expire.
are you sure these properties are cashflowing ??
Rents 34,000 / year
per month/ $2833
mortgage
270,000 @ 30 years 6% = 1619/ month
property taxes on 14 properties ??? maybe the property taxes are a lot lower there but even at 600/yr per property that would be $700/month
then your expenses (514/month left)
Am i wrong here but from the numbers given so far it doesn’t sound like at this price these are cashflowing.