What would you do?
Hello BP friends, newbie here. Made my first phone call! (Whew!) I read an ad in the local paper. (I live in west central Indiana about 50 miles north of Indianapolis.) It read "5 investment properties, possible contract". So I called. His words were "All 5 are rented, all need repairs, some updating". 2 properties have 4 bd/2 ba. The other 3 have 3 bd/1 ba. 3 are in the little city I live in and one is 5 miles south in a smaller town and one is 5 miles the north in another smaller town. I drove by each property and all have different degrees of deferred maintenance, but to me, A newbie, seemingly urgent nonetheless. He spoke of a new roof on one property 5 years ago. A $3300.00 boiler in another property. All need windows, siding, and I'm sure other extensive issues. All were built before 1930. It's seems just from appearance of the outside of the properties that this is a distress seller. His story was that he had owned these homes for 20 years, and that he had recently lost an adult son and it had "knocked the wind outta my sails". He had an appraisal done on these properties eight years ago that is what he's asking for the five properties as a whole. $258.000, 10% down with a balloon in 5 years. Income is $3200.00 a month and he said that I could "keep $600 or $700.00" a month. Only 2 had tenants with less than 2 years. This is not something that I could or would want to fund. I would appreciate some thoughts from the more experienced investors on this on how to make this a win win. Thanks!