Rental Portfolio Due Diligence

[Ruthie Johnson]

I was presented with an opportunity to buy 6 single family rentals (all in the same location, but out of state for me) as a portfolio. Each had been purchased and renovated to rental quality by the same owner 5 years ago. They were offering it as a turn-key deal with property management and current tenants established. The deal seemed fair, I would net over $1,000 monthly, but the price seemed high for the properties. I contacted a local agent to verify the individual estimated value of the homes. Combined, it was 30% less than the asking price (asking price $325k, estimated value, including updates made, ~$200k). Seller wouldn't budge on price. Agent mentioned I would have to sell these as a portfolio in the future, or invest considerably to bring each property up to standards for individual sale.

Any insight into how to do due diligence on a portfolio?