10 homes owner finance

[Chad Collins]

Would you do this deal? 10 homes in a decent neighborhood for 68K each. All are currently rented for 750 to 800 per month and the owner said they would finance for 50,000 down 30 year amortization and five percent interest-rate

[Omar Khan]

@Chad Collins Without knowing the specifics of the area/property, I would be very wary. For instance, in the price range you mentioned, often times, come with a lot of headaches (often, not always). Primarily, these are in the form of collectability of rents or the tenants causing expenses to go up (lower quality tenants treat the property badly). 

On the face of it, 10 hours @ $68K each with the financing terms you describe sounds like a good deal, you have to ask yourself the question: Are you willing to become a professional debt collector? Are you willing to shake people down for money? Because that is often what you have to do when dealing with D class properties (sorry don't want to sound too harsh). You should look @ the books to ascertain bad debt and other revenue collectability issues. Just because, a tenant has committed to paying $750-800 does not mean they will do it.