Package Deals

[Sam Leon]

I am looking at a series of properties where the owner wants to sell all three houses one next to the other on the same street. These were originally single family homes but legally divided into duplexes and zoned for multifamily use. The owner wants to sell all three in a single package.

I am looking to buy and hold for rent.

Obviously this is a more expensive way to get a six unit rental versus buying a traditional six-plex building.

Also more issues with these older, unique homes. These these issues are more unique due to them all being different homes, unlike a six-plex you will have similar, routine issues that could rarely surprise you.

Higher maintenance cost due to more items to repair. Instead of one roof you have three, instead of mowing one yard you have three etc...even pest control is more costly.

Not to mention three property tax bills, three insurance policies, three of everything.

I do think I can get higher rent on some (only SOME) of them, and obviously there is not going to be a parking issue, and I have a more flexible and potentially more rewarding exit strategy. Plus I could restore them back to their original state 3/2, 4/3 etc and rent them as SFHs and some of these have garages (storage).

Logic tells me I should just look for a traditional six plex or two triplex, less headaches, but I kept telling myself I should go for it - the price is not too bad - more than what you would pay for a six-plex of course.

Appreciate any thoughts, comments, advice, or someone talking me out of doing this or not. :)