multiple single family homes on one tract sold together

[DJ Roshan]

Looking at eight 2bd 2 ba and two 3bd 2ba rentals on about 10ac sold together in the Midwest. There is room to build additional homes. They are in the country within 10 - 15 min of small college town w/ population of 20K & County population is 45K. They are within 5 min from Interstate access & within 1.5 hrs of two major metros in opposite directions down same interstate! Price would be around 700k. Current gross rents are about 6k/mo, homes built almost 20 yrs ago. I'm assuming the 7 shingled roofs are orriginal 3 are metal. There are 5 wells & each supplies 2 homes and all share one Lagoon for sewage. Each home has a carport under same roof as house, a shed and a nice little yard & all have pretty view of cattle pastures. I think market could bring rents up to $700 - $725 for 2bd units and $800 - $850 for the two 3bd units. Of course current owner says they have maintennce expenses very much lower then normal over the last 6 yrs they have owned them. Taxes and insurance expenses are pretty low at just under 14k/yr combined. Based on most rules of thumb they would barely cash flow right away, but with rents brought up and no major capex they could cash flow around $100 per door. ps may have opportunity for seller financing and/or better price.

Thoughts?

Thanks in advance.