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Updated over 6 years ago,
Package Deal Purchase Price
I am looking to do my first package deal of 4 properties. 3 properties have paying tenants and 1 property the seller have their property manager living in the home rent free. The sellers are out of state owners that inherited the properties and looking to sell. I spoke with them today to see what would be the price they are looking to sell all 4 properties for in a package and they couldn't give me a price. I told them that I would give them a call back on Monday to see what number they came up with and so that we can negotiate on a purchase price. All properties are in good living conditions.
Here are the Properties rent and size
1. 2bd/1ba rent $300 per month 1050sqft
2. 1bd/1ba rent $325 per month 645sqft
3. 2bd/1ba rent $350 per month 1050 sqft
4 3bd/1ba property manager lives rent free could rent for $600 per month 1200 sqft
The sellers chose to do low rent because of the neighborhood but each property can easily pull in a extra $100-$150 per month.
My question to BiggerPockets is how should I determine my purchase price? Should I do a cash offer, seller finace offer, or both offers?