60 townhomes?

[Kevin Lopes]

I'm looking at a (foreclosed) portfolio of 60 townhouses that bank is asking $2 million AND willing to finance with 20% down payment. I received their rent roll and it's currently grossing $39,850 monthly with 5 vacancies. Using the 50% rule, that's:

$19925 monthly x 12 months = $239,100 yearly.

$239,100- $114,000 debt service (@6%) = $125,000 net income

$125,000/$400,000 cash down is 31% NOI.

Am I missing anything? I currently have 20 rentals and it's been relatively passive with the management companies. Is 60 more rentals too overwhelming? I'm thinking of offering them $1.8mil.