Multiproperty portfolio purchase advice in Tampa

[Christopher Yoo]

Hi all,

Newbie investor here seeking advice on this potential deal and what my homerun offer price should be. I live in CA and am seeking to invest locally or out of state as a buy and hold investor. I have a family friend who is retired and seeking to sell his portfolio of 8 properties (5SFH and 3 condos). I will list 2 of the SFH's and 2 of the condos. The others are similar, all located in the Tampa area. All are currently rented in 1-2 year leases near what I believe to be market value. All in good shape. No major repairs or upgrades needed immediately.

These are a sample of the properties. Offer price is 75% of the realtor appraisal with 25% down, 5% interest on 30 year mortgage and assumes 5% vacancy, 10% property mgmt, 5%repairs

SFH1 3B/2ba 1140 sq ft.

Rent/mo 1500

Prop tax 3384

Insurance 1931

Realtor appraisal $189240

Offer price $141930

COC return 6%

Cash flow ~$185/mo

SFH2 4B/2.5ba 2200 sq ft

Rent/mo 2000

Prop tax 4167

Insurance 906

Realtor appraisal $280000

Offer price $216700

COC return 6%

Cash flow ~$300/mo

Condo1 2B/.5Ba 1750 sq ft

Rent/mo 2625

Prop tax 5335

Insurance 3400

HOA fee 8280

Realtor appraisal $370000

Offer price $277500

COC return -7%

Cash flow $ -435/mo

Condo2 2B/2ba 1320 sq ft

Rent/mo 2300

Prop tax 6363

Insurance 520

HOA fee 7800

Realtor appraisal 450000

Offer price $315000

COC return -9%

Cash flow $ -653/mo

1. I think the condos are essentially non starters and shouldn't even be considered because of the very high HOA fee of 7000-8000 per year. Any other opinions on this?

2. In this case, is approximately 75% of the realtor appraisal value a good target for final purchase? I'm not sure what amount of cash flow, COC return or other measure that I should target in my offer?

3. Any significant precautions or advice for or against this deal as a new investor purchasing a portfolio of 5-8 homes out of state?

4. What options are there for financing a multiproperty transaction like this happen in terms of financing? Would a bank loan on the entire portfolio or would I have to get a separate mortgage for each property? Optimally, I'd like to seek owner financing but I don't know how much equity the current owner has.

Thanks in advance for any advice and opinions offered!

Chris