Need HELP...Purchasing My 1st SFR Package Deal

2 Replies

I am looking to do my first package deal of 4 properties. 3 properties have paying tenants and 1 property the seller have their property manager living in the home rent free. The sellers are out of state owners that inherited the properties and looking to sell. I spoke with them today to see what would be the price they are looking to sell all 4 properties for in a package and they couldn't give me a price. I told them that I would give them a call back on Monday to see what number they came up with and so that we can negotiate on a purchase price. All properties are in good living conditions.

Here are the Properties rent and size

1. 2bd/1ba rent $300 per month 1050sqft

2. 1bd/1ba rent $325 per month 645sqft

3. 2bd/1ba rent $350 per month 1050 sqft

4 3bd/1ba property manager lives rent free could rent for $600 per month 1200 sqft

The sellers chose to do low rent because of the neighborhood but each property can easily pull in a extra $100-$150 per month.

My question to BiggerPockets is how should I determine my purchase price? Should I do a cash offer, seller finace offer, or both offers?

There is a lot of info you are not providing

I first of all I would want vacant possession of the 3bed unit and have that property manager out.. She is getting free rent of potentially $600 a month for a $975 monthly rent roll.. That's dumb... or have them sign a new lease at closing at a discounted rate and continue to manage..

You didn't even give any indication of purchase price. How would anyone on BP make a suggestion other than looking at comps or ask a realtor?

Personally for my first investment I would use a professional rather than asking BP. 

Cash you will likely get a lower purchase price as seller finance you usually have to pay near full asking...    But my strategy would be going on a lower offer with seller finance and if there is any push back then try cash with same or lower amount..  also depends on terms of loan..

Good luck..