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Updated about 5 years ago on . Most recent reply

User Stats

56
Posts
17
Votes
Manuel Prado
  • Midland, MI
17
Votes |
56
Posts

Would you buy a package of 13 SFHs today?

Manuel Prado
  • Midland, MI
Posted

What extra precautions would you consider now when buying SFHs for buy/hold?

We have a deal of 13 SFHs with a 30% ROI after taking the following allocations:

- 21% towards repairs/vacancy/capex,

- Paying taxes and insurance

- Paying mortgage (principal and interest)

- Paying for property management

- Extras like utilities in some, grass, etc.

I may be overthinking this given the uncertainty in today’s market, but what else would you consider if you were to buy 13 SFHs today?

Very thankful,

Manny

  • Manuel Prado
  • Most Popular Reply

    User Stats

    154
    Posts
    72
    Votes
    Joseph M'Mwirichia
    • Rental Property Investor
    • Sarasota, FL
    72
    Votes |
    154
    Posts
    Joseph M'Mwirichia
    • Rental Property Investor
    • Sarasota, FL
    Replied

    Great work Manuel! If they are already have tenants, you could consider a 90 day rental guarantee held in escrow at closing. Looks like you have a solid ROI though, so already good on the entry. Your strategy after you acquire the properties is where you'll probably need to build in contingencies.

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