Need help with portfolio offer

2 Replies

I have an off market portfolio that I would really like to make an offer on however I am not sure exactly what I should offer for it.  Any thoughts or suggestions on how I could structure this?? (the 1 bdrm 5plex is way to low imo) owner is open to in his words "anything that makes sense".  Mind you I would like to do rent increases across the entire portfolio because he is way below the market rents in the local area. 

# of bdrms # of bathrms Sqft Current Rent High prop value Mid prop value Low prop value Annual Taxes
2 1 956 $600 $140,651 $126,000 $122,200 $787.20
2 1 884 $574 $133,164 $114,200 $111,700 $738.16
3 2 2005 $1,200 $330,811 $321,000 $312,800 $2,110.96
1 1 672 $550 $114,600 $113,878 $111,500 $638.08
2 1 792 $515 $130,700 $129,840 $121,900 $772.06
1 1 $490 $160,000 $158,000 $154,782 $952.64
1 1 $490
1 1 $490
1 1 $490
1 1 $490
1 1 $550 $98,800 $98,000 $92,915 $941.58
3 1 $590 $183,939 $179,700 $166,800 $1,381.78
TOTAL $7,029 $1,292,665 $1,240,618 $1,194,597 $8,322.46




Annualized Income
$84,348 $84,348 $84,348 $84,348
Annualized expenditure $73,344 $70,392 $67,776
$8,322.46 $8,322.46 $8,322.46
Total Profit $2,681.54 $5,633.54 $8,249.54

I would request T12 and rent roll for the whole portfolio. Calculate the total NOI for the portfolio. Determine at what cap rate the market is at as well as what cap rate you would like to purchase at. Use NOI/cap rate to calculate your offer price. Definitely ask the seller if he is open to seller financing as well.

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