9 Duplex Purchase - how to finance?

[Justin Dominguez]

Hello all,

North Texas investor here.I have an off-market opportunity to purchase a portfolio of several duplexes. They are all in good condition and are in a well-established neighborhood with a good school district. All on the same street. All less than 20 years old. All currently 100% rented.

The seller is offering them individually and has priced them at around 80% of their market value. But they are open to offers on the whole lot (thus providing even more equity). Asking price is around $1.6 million, market value is a little over $2 million.

Net operating income using the current rental income is $7,870. Rents are below market, so increasing them would increase the net operating income to $9,800. (This is using last year‘s insurance premiums, last year‘s property taxes + 10%, 10% property management fee, 6% vacancy and collection loss, and 7% repairs and maintenance cost.)

I have three rental properties. Combined, their tax value is $617,000 . There is approximately $50,000 worth of loans against them - so I have quite a bit of equity. Two of them are single family homes in one LLC, the other is a commercial building that is in its own LLC.

I have around $20,000 in cash (I would have more but I just used $28,000 to purchase a 4th rental).

Can I finance this deal? How?

Thank you immensely for any input you can provide!