8 Properties Bundled at Discount - 12.5% CAP Rate

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I'm looking at an opportunity to purchase 8 local properties at a discount. I am going to research the properties and the owners numbers to see if the 11.9 - 13.1% cap rates are close to actual #'s.  Here's the ad:  Would love any thoughts or suggestions - Thanks!

8 property portfolio with •over 12% cap rate,

  • over $80,000/year gross income,
  • owner financing available,
  • solid tenants, and
  • over $100,000 lower than retail value.
  • Motivated Seller.

    For sale is a seasoned 8 property investment portfolio that has been well run and well maintained. Properties are being sold because owner is looking to retire and sell off his home inventory. Owner Financing is available, please read below for more details on that. Owner willing to negotiate terms.

    Above are pictures for roughly half of the properties which should give a good representation of how they have been managed and the areas they are in. These are being sold at roughly $100,000 off retail. Seller is motivated.

    Looking at the numbers above and the pictures of the properties should say it all. This deal is good and will not last long, 12.5% Cap Rate is very good for any deal, add the option for owner financing and the fact most of the units are already rented out with stable tenants just makes the deal that much better. Investors will be hard pressed to match the benefits of this deal elsewhere.

    Attached above is a breakdown on the numbers for this offering. As you see for roughly $65,000 a property you are picking up a portfolio in which every single property is capping at or over 11% and as a whole the portfolio caps at 12.5%. In addition, equity on purchase is large enough for immediate property resale for profit for much of the portfolio. 

    Sounds like crap posted by some wholesaler.  Good luck with those numbers being real.  Gross rent is about 16%, you think NET is 12.5% ?

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