Hi all!

I recently got an offer on a portfolio of rental property, promised to be turnkey with a great cap rate.  I'm wondering how to go about due diligence without sinking the deal in transaction costs?  So far my expenses for each house are property inspection, appraisal, termite inspection, plumbing check, title insurance.   

it seems you have already done quite a bit of homework. When you say "turn key", I assume you mean the homes are rented and need little or no repairs.What are the rents and the expenses? Have you seen the lease?. Do the rents reflect the market? What is the NOI and what would be your debt? What is left is your cash flow. The caveat is, don't take the owners word for anything. Look at his schedule C.

I hope that helps.

Rent schedules and delayed maintenance would be my concerns. I would go thru both and verify the great cap rate. make sure all other numbers are in order. Sometimes -long term tenants have a blessing and a curse. If they are current and happy -great- if they owe money and the place needs a sever rent ready - not so good. Good luck.

Why is the seller selling them.

Looking at his tax returns is a great idea.

Are you buying good houses with dead beat tenants?