15 homes in one loan...how

[Micah Shelton]

While doing a video walk through on a potential purchase the owner stated she had 15 off market deals she would be willing to package together All are rented and here is the overall deal:

3 duplex style homes

12 SFR

$880k purchase price

$8350 current rent roll. All tenanted.

My PM stating we can get them up to $11500. 

Need recommendations for loan on the package deal. Would like to purchase, increase rents and refi entire package 2-5 years down the road.

[Alan Grobmeier]

8350/15 = very scary to me.  $566 per unit per month average.  Sounds like a crack house to me.

And stating you ‘could’ get $11,500 a month is pie in the sky.  You will either turn over a lot of tenants and/or do a lot of renovations.  Your pick.  You are assuming the previous owner hates money and never wanted to rock the boat and raise rents.  Don’t be fooled here.  Your average tenant can’t afford a $200 per month increase in rent AND still buy their crack.  ;-)

As far as how to bundle them:  easy.  Owner finance is the most probable.  Otherwise you are looking at a commercial loan.

Best of luck on this one.  You will probably need it.