Looks like an investor is cashing out

[Mark Wood]

I'm looking at a set of 15 duplexes for sale all together.  I've gotten a pro-forma from the seller and it looks like an 8.6% cap rate.  They were all built in 1964 and most are currently rented.  

I was hoping to shoot for a 12 cap rate, putting the purchase at 1.4 million and I'd like to gather a group of investors to go in with me.  What things would you guys advise me to look out for?

[Rob Beardsley]

Hey, I would reach out to local property management companies to see what it would cost to manage the portfolio. Also, in order to achieve a win-win for you and the seller, see if they would be open to seller financing so you could afford a higher purchase price. Other than that, inspections to uncover deferred maintenance.