need some help please....how to best analysis this deal
I am meeting with a realtor on Monday to discuss a possible portfolio purchase of 8 properties. All of them have deferred maintenance on the outside, I haven't been inside yet. As of right now the asking price is $975,000 the best I can tell it is a total of 27 Units, 32 beds, 29 bath current rental income $16,921.00. I want to make sure I get all the information I need to be able to decided if this is a deal I should pursue. I know I need to get the current rent roll and also what capital will be needed for repairs for starters.
I am not sure how to value the deal for starters, these are all early 1900's house that have been converted to multi-units the largest being 6 units. I can do it on an individual bases but is that the correct way it should be done? Should the value be figured as a package or individual property? which method should be used appreciation or cap rate?
I have purchased single family and most recently a tri-plex rehab but this is a lot and want to make sure I dot my i's and cross my t's
thank you ahead of time for any help