How Should I Analyze Quad Deal?

[Diego Lopez]

I was offered an off market deal, two quadplexes (northern Indiana) for the price of $385k. Would it be reasonable to ask the seller if they would be willing to sell the properties separately so that I won't need a commercial loan? I would finance the deal using 2 residential loans if possible. 

If the seller is not willing to sell separately, should I analyze the value of these quads based on income stream since they are being sold together or based on individual market value?

I'd appreciate any and all feedback!

[Milton Rivera]

@Diego Lopez

The financing option is up to you (unless they are providing owner finance) since you would be the one to bring the money to the table.  In this case, the determining factor is how were these properties titled.  If they are titled, zoned, etc. as two independent quad units than you can get two residential loans that close on the same day.   

There may be other reasons why the units may be sold separately, say one is completely vacant or has a lot of deferred maintenance and the other has very little upside than it would be up to you to run the numbers to see if the deal meets your overall goals.