Buying a portfolio of rental properties

[William Walker]

I own a few SFH rental properties and have for years. Own my primary residence and have refinanced both so I'm familiar with the lending process/steps.
I’ve been looking at local multi family properties which has led me to portfolios.  I’ve read articles and watched a few videos but I’m still confused on the general process. 

I see a listing for 6 SHF together. There is a price and a pro forma. Say I like the numbers. I get a rough value for each individual property and decide I want to purchase. It’s listed on say realtor or loopnet. Do I treat this as a normal purchase and get funds, pre approval, contact agent?  Do I talk a bank and get a commercial loan?  What are my next steps to buy a portfolio as an individual W2 earner?  Thanks

[Ken Naim]

@William Walker assuming that the 6 sfh are on different lots/deeds which they likely are you can handle the purchase 2 ways as a unit with all 6 being collateral on a single commercial loan. Other option is 6 contracts to buy each one individually. Each is its own mortgage and collateral. The overall price and downpayment needs to be broken down appropriately so each has sufficient equity as collateral. Usually there is a clause in each contract stating that the sale is contingent on a simultaneous close with the other parcels. First option is easier and cheaper from a closing cost point of view. Second opinion makes it easier to sell individual units later.

There is a third option but that usually reserved for much larger portfolios where you buy the llc including any existing mortgages. This has significant risks but at the portfolio sizes they are used are use in, the risk is factored into contract and price.