WOULD YOU DO THIS DEAL

[Pat Zorne]

Buying 60 single family homes for 2 million with a combined appraisal of all properties adding up to 4.5 million. seller is showing an NOI of 290k. Found a bank that will lend 2.3 million with no money down giving buyer 300k for repairs or whatever. the interest rate is 11% with the bank offering to refi in one year at 5.5% buyer has to pay closing costs including 4 points to the bank. properties are 90 % occupied. Interest rate is high but buyer only has to pay closing costs to get houses. Is this deal worth doing. Also the 11% loan is interest only.