Good deal or not??

1 Reply

Hello my fellow BP investors so I have been doing some research and was given a heads up on some properties that are going for sale soon. I have another partner willing to go in on this deal with me but from the notes I took does this sound like a good plan or something that is too big to chew on. We are still trying to see if we would do a blanket loan since there are more SFR's or go commercial.

100% Occupied, 10 Single Family Home PACKAGE

These (10) Properties have a combined sales price of $995,000

All houses are rented with monthly a gross amount of $7,641 or $91,692 annually

I would assume that insurance would be anywhere from 4k-6k annually + maintenance fees 

The sellers are willing to offer free management services for the first year.  

Any advice I would greatly appreciate- cheers 

Lorenzo,

I'm just trying to get things started for you.  It depends.  What is your investment strategy, goals, your exit strategy?  This cap rate doesn't look particularly attractive on it's own but that's only part of the picture.  You need to put more context into your question.  For instance, what is the normal cap rate for the local?  Is this an appreciation play?  When do the leases expire?  Do the houses need work?  Are they in a high demand area?  Are you putting a lot of cash into the deal or as little as possible?  

Draw us a better picture so we can be more helpful.  

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