Over 20 rural SFR for sale - worth it?

[Mikhail Petrenko]

I am discussing a deal with one semi-retired landlord. He is willing to sell over 20 rural houses.

I want to propose owner-financing.

PRO:

- almost all houses have long-term tenants in place (some stay 7-10 years)

- houses are in decent shape

- great NOI

CON:

- all houses are in different rural cities and areas, for example, two 3/1 in Ft Scott, KS, one 2/1 in Ontario, OR, 4/2 and 2/1 in Miles City, MT, two 3/2 in Bismarck, ND, etc.

- it will be a nightmare to manage all of them, find handymen etc

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I think I can buy them for $150k downpayment and $450k paid partially within 5 years

NOI is $71000 for 2019.

Is it worth it?

[Jim Pellerin]

Does the NOI include management expenses. The management of these would be difficult. And you said the condition was decent so maintenance is probably due. Maybe buy them and convert them all to Rent to Owns and sell them off in 3 years. The benefit is there is a lot less management and virtually no maintenance if you set it up right.