Portfolio deal fell in my lap - how to finance?

[Corey Cox]

Hi all (first time poster, long time lurker),

So, I've been heavily analyzing deals, reading books, researching, etc for the past few months about real estate investing, after deciding I wanted to move back to my hometown in the Midwest to invest in local properties. My plan was to buy my first deal (preferably a multi-family) at the beginning of spring NEXT year (2022) with an FHA loan at 3.5% down.

Today, as I was watching the market in my hometown, I noticed a group of similar properties all reduced in price on the same day and it turns out they were all listed by the same agent. I ended up calling an agent and she told me that it was a portfolio sale (5 SFH, 1 triplex) from an investor couple who didn't want to deal with SFH/small multi-family real estate anymore. We talked more about the portfolio and I asked if the sellers would be interested in doing seller financing or any sort of owner-carrying financing. While she hasn't heard back as to a definite from the sellers, she says she remembers them being open to it as a possible option.

With all that said - I'm thinking of submitting an offer, but with both inspection contingency and a financing contingency, just in case I can't raise the capital...But, I'm not sure the best route to go in terms of finding that capital.

My plan for this portfolio would be to buy-and-hold, and while these houses definitely could use some work, they are all currently occupied (except 1) and not in horrible shape by any means, so not thinking a complete BRRRR.

They all cash flow at their current rental rate, but they definitely have room to move up in rent to be comparable to the town. And none of the tenants have missed a payment during COVID. 

With all of that, I wouldn't think that hard money would be the best option for a buy-and-hold with not a TON of upside for forced appreciation, but am I wrong in that? 

Aside from looking at various seller financing options, I'm also looking at trying to fund the downpayment of whatever option may work (as this is all happening way before I was planning on having enough money ready for a 3.5% downpayment). 

And to complicate it all, I'm a self-employed worker with credit that I'm in the process of cleaning up. So, my conventional options don't look to go either (especially since they probably wouldn't refi me to a regular bank loan). 

I don't want to rush into this or think that if I miss this, I'm doomed, but I also think I am realizing how good of a deal that just so happened to be put in front of me. 

Any suggestions? 

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Tl;dr I think I found a really good starter portfolio deal, but I'm not sure about how to "creatively finance" it or how to make it happen. Is this all too much to start out with? Should I let this deal go, since its my first investment? Or do I dive in head first and work like hell to make it a success? 

Help?

(Thanks in advance!) 

-CWC

[Dan M.]

Try to do it yourself if the numbers make sense and use the bank of family and friends to fund it. Your credit score unless it is sub 650 really isn't a deal breaker just expect to pay a higher rate. If you cant do it, partner up with someone. You bring the deal they bring the capital and work out an equity split. PM me the details I might be interested if the numbers make sense and your willing to manage it.