12 property owner financing deal

[Johnny Quilenderino]

I have the opportunity to buy 12 SFR in a C and D class area. The gentleman is getting out of the business and is offering owner financing. All of them would get 300 dollars a month back after PITI. I would need 18k for broker and realtor fees, plus another 5k for the termite and home inspections. What questions should I ask? What contingencies should I put in the contract? How should I go about paying off each one individually once I have them? I already have a HELOC pulled for the 23 k needed for the transaction. Just worried that I might be over-extending with all twelve at once. Any feedback would be greatly appreciated.

[Alex Deacon]

@Johnny Quilenderino Why are you paying the broker if they were listed on the MLS? Also why are the inspection fees so high. if you are doing 12 they should be discounted to $350 each. I would be extremley careful. In this high demand market if someone is selling a portfolio and giving you owner financing make sure of the following

1. Tenants are all paying. you could buy and close then find out 6 tenants dont pay. now you are stuck evicting and then refurbishing 6 units. You can ask for a legal document that the owner and tenants will sign stating they are current in their rents. This will keep the landlord honest.

2. Make sure you use a liberal number for repairs and vacancy.

3. Be conservative on your rents

I dont want to rain on your parade. I want you to be successful. But I also want you to be careful.