Deal or No Deal

[Todd Jones]

I am currently evaluating a transaction to purchase 14 brick duplexes in a package deal for $1.6 MM.  Eight of the 28 total units are 2 BR/1 1/2 BA and the remainder are 3 BR/1 1/2 BA, with rents ranging from $650 - $800 per month (gross rental income at 100% occupancy is $19k per month).  The properties were developed by the owner approximately 12 years ago and have been well maintained.  At an assessed value of $1.85 MM, the properties pay $38.5k annually in property taxes.  Please advise as to whether you think this is a deal worthy of evaluating further.  If so, any guidance or insight you can provide into how I should be approaching the due diligence and evaluation of the transaction would be greatly appreciated.  What questions and information should I ask for?  What assumptions should I use in underwriting the economics?  If the seller is open to creative financing, what are some possibilities I should consider proposing?  Should you have questions or need more info from me to accurately assess and share your perspective, please feel free to ask.  Many thanks.