5 Rentals: How would you work this deal?
I had a caller come in via some mailers I sent out the other week and this guy has a fair amount of properties, 20+ I believe he said. We had a plesant conversation discussing a huge number of things including that this gentlemans kids are not interested in taking care of his rentals, which was one of the reasons he contacted me as he is 72 years old.
I am focusing on 5 of his properties that are in a very similar in size (3bd/2b), built in the late 90s, similar lot size and even the same subdivision. In the last 90 days, I am showing that the median sales prices for similar homes matching sq feet, lot size, bed/bath and year built at 159,000.
He started off telling me that the reason he was interested in going this route is that he can avoid paying commisions and all the normal fees associated with traditional sales (vacancies, improvements, etc) and wanted to roll the cash into a tax free bond. Not sure if that is possible but that isn't the question here. He very much seemed against taxes/commissions even if that means he accepts a lower offer.
He also mentioned that he has thought about carrying a note, I would assume for a short period of time (approx 1-5 years).
I would be very interested in working this into a buy and hold deal for myself, my only problem is I don't have much cash to swing around yet. Knowing the above information, how would you approach this potential deal?
If there are any details I failed to mention that would be useful, just tag me and I will update.
Thanks in advance for the help!