Taking over landlord's business

[Sean Butterfield]

Our ex landlord has proposed to us the sale of his 40-plus rental properties as he is in declining health, and as he put it, he's just tired of it. The bulk of his properties are single family homes, with a few du/triplexes and 12+ unit apartments. He's been at it for 15+ years so I can understand. What in your opinion would be our biggest hurdle in acquiring and running a turn-key operation like this? He stated that he would "stay on" in a consultant/mentor role until we got the hang of it, but we're not sure how long that would be obviously. Has anyone have ANY advice/thoughts on how we could pull this off?

[Matt Devincenzo]

I'd look round here and make sure you REALLY understand how to calculate cash flow. Because without a good understanding of exactly what the numbers are you don't know if he's offering a price that is a deal for you or a deal for him.

Like Marco said I would then start with the financing, even though it will likely be owner financing the kind of terms on the note will determine whether it will be profitable or not.

Also you said he will be staying on to help you get started, I'd recommend you both figure out what exactly his payment is for that whether % or fee based . Also how long he will be obligated to be available.

I say that because approaching a lender and looking to get loans with no LL experience will be much more difficult the first month of doing it than the 3rd year, so even if he is carrying the note for you you will need to start looking at re financing to pay him off at some point, so I'd be sure he is obligated to get you going (if that is the deal you need to do this) until you are ready to be on your own.

It'll be a lot to jump into LL with 40 properties maybe more than you really want to deal with, but that being said I wish I had an opportunity like that come my way, for the right terms it could definitely set you up well.