Acquire 6 properties for no money down: Having a hard time saying no, should I go for it?

[John Ellis]

By luck or maybe not I received a call about acquiring 6 properties. I need no money down but I am responsible for the loan payment and back taxes. I normally do 1 SF rental at a time so this sort of deal I am having a hard time analyzing. This is all the information I have. I did speak to all but 2 tenants.

Loan: 42,000 @10% interest only payment of about 500.00 ballon due in 3 years

Back Taxes: $13,720.55

2 properties are on lease to own:

Property 1 for 35,000 $575.00 per month

Property 2 for 50,000 $675 per month

Property 3 is rented for $400 per month no lease

Property 4 is rented for $400 per month no lease

Property 5 is rented but not paying no lease

Property 6 is rented but not paying no lease

Property 3-6 are in D neighborhoods Property 1 and 2 are in C neighborhoods.

Issues/Consideration:

Properties will not appreciate if at all as they are in the city of Cleveland so realistically I do not want to plan for appreciation.

I will not manage these properties and will hire a property management company

I have 4 other rental properties

I really don't have an exit plan

42,000 is a blank lien on all properties. Which I think will make it almost impossible to sell individually (Company will release home for 7500 per house but lien will still show up. I just don't see an investor OK with that.

Here are expense numbers:

Taxes(Which I will go to county to lower values but this is where they are at now:

$793.04 taxes

$198 Insurance

$500 Loan

300 Management

A deal this big (for me) I just want to make sure I have a firm grasp as what I am getting into. The no money out of pocket is what is intriguing, I think.

Deal or no deal?