Deal on 4 houses...hack one and rent three...first time

[Jason Boyer]

Here is the deal we are currently looking at.  4 single family houses (2bed1bath, 3bed1bath, 3bed2bath, 4bed2bath).  Rents are $500,$500,$845,$845, but the 4bed we would be moving into.  Based on the numbers from the BP calc...we would come out $156 ahead each month, with no house payment for ourselves.  All houses are currently occupied with 7-8 months left on the leases.  Here are the detail numbers:

Asking price $200,000 whole package

Closing costs $12,000

Upfront repairs $20,000 (this is an overestimate by alot, what dosent get used will go into a repair account to hold until needed)

Total taxes $287/month

Insurance $200/month

Monthly Rent income $1845 (about $150-$200 below market rate)

All upfront money would come from selling our current house now, which hopefully brings us 60-70K in equity.  

3 out of the 4 houses are in fairly good condition.  Basements need small amounts of work, no structure work though.  Roofs are all in good condition from visual inspections from ground level, no curling shingles.  2 could use a good scrapping and paint job on the outside.  Carpets are in good condition and wood floors feel solid.  One does have a hole and leak in the ceiling in a dining room...that would be the first project to fix.  I am a maintenance man/electrician by trade so I would be doing all the work myself to start with.  I have figured in 8% repair rate each month and an 8% vacancy rate as well.  The seller lives on the coast, just wants out of them so my plan is to start with a $150,000 offer, with contingency that we sell our house first.  I have a BP report I can share as well if anyone would be interested in looking at it.  Let me know where I can improve or what I shold change to not get myself into a bind.

Thanks