Package Deal: 16 SFHs w/ 2 Accessory Units

[Spencer Wayne Whitley Jr.]

I’m evaluating a package deal of 16 single-family homes in northeastern NC, and I’m looking for advice on the best way to approach this opportunity. Here are the deal details:

• Purchase Price: $540,000
• Closing & apriaisal: 20k
• Repair                 250K
• Property Details:
• • 16 single-family homes (2 with accessory units)
  • 9 units currently occupied at $700/month
  • Majority of the properties have new roofs and new HVAC systems
  • 7 of the units that are unoccupied would take approx. 15-20k to be ready to rent
  • 2 of the units that are unoccupied would take 25-30k
    
• Rental Potential:
  • Section 8 average rent in this area is $1,008/unit
  • Current rents are below market (750-850)
• My Position: I have the opportunity to wholesale the deal but am considering if holding and pursuing a Section 8 strategy might be more profitable in the long run.

I’m not very experienced with Section 8 rentals but feel that could be a solid strategy to maximize cash flow given the current rents and potential in this market. This deal would tie all my cash up for 7-12 months.