Single Family Home Portfolio

[Prince Conley]

So I have a friend of mine who's an agent in Atlanta. She has a decent off-market portfolio of single family homes/duplexes and triplexes (20+) with a good NOI. Not in an amazing area but not a war zone either. I don't think I can wholesale the deal as it's off-market but with an agent here so I could potentially go the find a buyer get a fee route I suppose. I honestly would love to try to get 100% financing and just purchase them myself however is that even possible. I just purchased a home so my savings are pretty much gone and there are a lot of other issues that have came up which really would not allow me to purchase through credit.

Bigger Pockets Community how can I make it work? Or should I just forget about it. Any info/help/advice/partnerships would be useful. The numbers are below:

Price: $2.3m

Gross Annual Income: $256k

Annual Net Rental Income: $206k

Net ROI: 8.79%

[Brandon Roof]

Never base your decision solely on financial information provided by the seller.  Was this a pro forma or actual figures?

If it's pro forma, they are likely outlining a best case scenario with low vacancy and expenses with high revenue.  Even if it's actual, you're likely looking at a snapshot of one really good year with low maintenance and capex in order to paint a rosier picture than what actually exists.

All of that aside, given your current scenario, I wouldn't even be messing around with a deal like this.  Taking 19 or so steps back and saving for a down payment to acquire one single or multifamily property may be the best approach before you attempt to become a mogul overnight.

[Account Closed]

@Prince Conley Net ROI of 8.79% with financing???? That's way too low.

In smaller MFR and SFR there are still select markets all over the country (and I'm sure some not too far from you) where you can get a 10 cap or a 20% cash on cash return (based on a pro forma with a 5% vac and 10% maintenance reserve + actual expenses). With a hyperconservative pro forma you can still get a 15% ROI, especially with lending getting cheaper.

Do not settle for low cash flow in such a high market where prices and the economy are expected to soften in the near future. Go get a 100-110k duplex that rents for 1500/mo in a C+ neighborhood, in a different market if need be. Sit on it for a  few months and see how you do, then buy some more just like it as long as we're at the peak as we are now.

[Prince Conley]

@Account Closed thank you both.  There is about $20-$25k in equity within each house without repairs and  5 are duplex/quads. Still waiting for rent roll along with HVAC and Cap Ex details however rent is below market rate.  Maybe it's better to take a stab at the best one(s) or I might sit it out.  Thanks for your feedback though.

[Hope Blakely]

@Prince Conley any updates. I am currently weighing the options of a single-family portfolio-13 properties.