Purchasing a Portfolio of homes?

[Brian Lipszyc]

I've come across a possible deal to purchase a few rentals, currently being "packaged" as a single portfolio.  Together, the numbers play out very good, but I'm not sure if purchasing it as a complete portfolio is the right thing to do?  Is this done often?  How would I eventually cash out down the road - do I refi each house separately?  Open to suggestions on what to read/research to possibly make a move on this one.

[Michael Glaspie]

Purchase as a bundle and sell off the ones you don't want down the road. There will be some paperwork that has to be done when a property is cut off and sold, but your lawyer and lender will take care of that. 

The biggest consideration is to make sure your cash flow can cover your debt service. That's the way the bank will lend on it. So if it is cash flowing now and it covers your debt, you are good to go. Then keep that in mind as you break it apart in the future. Always think about the debt service and if the cash flow can cover it.