Help Analyzing a investment deal

6 Replies

There are 10 sfr for sale as a package deal.($169,000) All 2 bed 1 bath houses. All homes one the same street and on three parcels of lands. Tenants pay all utilities. All homes currently rented for 400 to 500 dollars. I am wondering how you would analyze this investment. Would you analyze them as one property or each individual. Also I would like to know way you would look at this investment like that.  

If you are going to buy it as a package then that i s how I would evaluate it.  On the surface the rent vs the price looks very good.  (2.3% -3%) 

I don't know that specific market but that seems very inexpensive ($16,900/unit) Is this typical or are these very low end properties that could be maintenance headaches or tough to find tenants? 

Check under the analyze tab above for tools to help you evaluate the deal.

i would not say very low income but I would say lower income. There are alot of rentals is this area. I have not went to view the properties yet so not sure on the maintenance also waiting on the rent roll. Most homes there are 30 to 50k range.

@ned there is some deferred maintenance I am sure

from the number: 10 sfr, each is $16,900. Yes, this is very cheap. The cash flow is very good. 

If you are local and know the specific market, you must know why it is so cheap. Could it be rough area?

i would not say war zone but I would not live there with my family. But most investors would not live where they buy.

Jerry, the advantage of getting a block of houses geographically together is that you can impact the area more with improvements and tenant selection, and you are more efficient in trips to the properties.  Sounds intriguing, but be realistic with the cost side.  These lower end rentals take more time, energy, and funds.

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