Got a Lead, What should I do? What would you do?

Question

Newbie here.

I got a lead on 4 sfh homes that are all 1 bed 1 bath homes. price is 75k for all 4. two of them rent for $400 and the other two rent for $450.

Mortgage would be roughly $600 per month

Rents would be $1700 per month

1. Do you think this is a good deal?

2. How would you pay or try to pay? (cash, finance, etc)

I've talked to current owner, he wants to get out of land lording and sell his properties.

Any advice would help! Thanks in advance!

Andrew Zannotti · Answer

@Ethan Board gotcha, if you have the cash and you can get it at a discount it could work, as everyone above has said you just have to be prepared to work given the area the properties may be in. In terms of lending this may be challenging because from what I get out of your post the properties are on multiple lots so it may take some time to find a lender to work with you on it.

Todd Rasmussen · Answer

@Ethan Board

So this sounds exactly like a portfolio we purchased in April. Just plan on evicting and rehabbing your way through every one of those properties....

Ethan Board · Answer

@Todd Rasmussen thanks man. They’re in a rough part of town but I talked to current landlord via phone and said that 3 of the current renters are fine and the 4th he had to evict the other day finally for not paying for over a year.  I said why a year and he said he was too soft to be a landlord and couldn’t evict her this why he is selling.

Todd Rasmussen · Answer

@Ethan Board

Tired landlords often have ridden an aging portfolio into or at least near the ground. They get in a deteriorating property, deteriorating quality of tenant cycle and never recover. Off the bat those numbers look great, but if these are in a terrible neighborhood or need a bunch of work then it might be tighter than it appears at first glance.

If you think they are worth 75K, put in an offer with all the exceptions you need and go inspect and see what you're really in for. Once you have all the info you can renegotiate, close, and get your membership card.

Ethan Board · Answer

@Bob Stevens these properties are in a rougher part of town and wouldn’t appreciate much so unless I can get them really low then I could maybe flip. Thanks for your input I appreciate it!

Bob S. · Answer

@Ethan Board simply connect with someone that is doing deals,learn and apply what you learn. ALso better idea flip it to that person,

Ethan Board · Answer

@Andrew Zannotti I ran that by him earlier today but he was not interested in owner financing

Andrew Zannotti · Answer

@Ethan Board I would approach the owner about doing an owner finance deal on this. Sell it to him or her as an opportunity to continue to get a direct monthly payment and you take all of his or her headaches away.

Got a Lead, What should I do? What would you do?

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