SFR Portfolio Purchase

[JJ Picard]

I've been very interested in buying SFR portfolios from investors looking to sell their portfolio to one buyer. I'm working on a 20+ SFR one now. Sellers tend to like the all or nothing approach and I can realize economies of scale to realize with a smooth bulk deal. My strategy is to keep all occupied with their current tenants in a buy and hold pattern for the cashflow until they organically vacate and then spend some money to update major issues, rehab and sell individually one by one. I have an excel model with all my assumptions and the local team and network to handle any volume, but because there are a lot of different variables and ways to attack the problem. I'm wondering if anyone has any experience to share or advice in sourcing, valuing and servicing a bulk SFR deals?

[Lionel Li]

Originally posted by @JJ Picard:

I've been very interested in buying SFR portfolios from investors looking to sell their portfolio to one buyer. I'm working on a 20+ SFR one now. Sellers tend to like the all or nothing approach and I can realize economies of scale to realize with a smooth bulk deal. My strategy is to keep all occupied with their current tenants in a buy and hold pattern for the cashflow until they organically vacate and then spend some money to update major issues, rehab and sell individually one by one. I have an excel model with all my assumptions and the local team and network to handle any volume, but because there are a lot of different variables and ways to attack the problem. I'm wondering if anyone has any experience to share or advice in sourcing, valuing and servicing a bulk SFR deals?

I've seen a few SFR portfolios for sale however, they never seem to be the areas that I would really want to find deals in. Along with that, they always manage to sprinkle some rentals in really rough areas in there. I might've been okay with haggling the average price per rental for other units..but I look at those two or three dogs and I just don't want to go through with it. I'm waiting for the day I find a great or good portfolio from an investor that wants to 1031 into bigger deals but I know I'll have to act fast.