What's the downside to buying myself a portfolio?

[Josiah Mann]

I've come across a few 100+ unit portfolios of single family and small multi-family properties in my local market that I'm interested in purchasing. The main reason for my interest in these specifically is that they offer owner financing and I don't have the equity or cash to get in another way at the moment.

My main question is, assuming I put very good property management in place, get a good price based on actual rent rolls and P&Ls, and due my diligence thoroughly (including inspecting every unit), is there any downside that I might be overlooking?

[Tim W.]

I think a portfolio can be a good way to go, but like most people who will lend you money, you will probably need a down payment. You may find an owner willing to self finance the deal, but they usually want money down to see you are serious.

If you buy a portfolio deal, make sure you check every individual property. Make sure they are actually rented. Check deferred maintenance.