I have come across a portfolio deal with an investor, but I am not seeing how I can make their asking numbers work so I have tried to come up with a couple options to counter back with. Since they were already willing to seller finance, I am hoping you guys have some additional ways to counter to make this a good deal and to verify that my current analysis looks okay. I have come up with 3 options so far, but option 1 does not meet my minimum monthly goal of $100 a door, but the two other options are closer. I am wondering if I need to lower my asking price even more, but I don't believe he is super motivated and will accept a low ball offer.
All the homes were built around 1950 and range from 850-1100 Sqft. I have not done a full analysis of each rental to see what the deferred maintenance is as I figured that would be after I am in contract with the seller.
One item that concerns me is that I am coming up with an actual expense ratio of 55-60% instead of following closer to the 50% rule. It makes me wonder if I am off on my costs somewhere. let me know what you think