Wholesale Multi Property deal south of Dallas, Texas

[Patrick Bergman]

Good Afternoon Fellow BP Members,

I am a new real estate investor in Ellis County, Texas and my goal is to build a cash flow portfolio and profitable business model for years to come.  With that being said, with my cash situation I think that the best way to start generating cash and learning the market is to wholesale property.  I have put out various forms of marketing, and today I received a call from a motivated seller wanting to dump seven rental properties because he is moving out of state and does not want to be a landlord anymore.  He faxed me the information on the properties and the rent they are currently generating.  All seven properties have long term tenants and the properties never sit vacant.  The properties are as follows:

1) 3/1 frame house with no A/C currently renting for $450.00

2) 3/1/1 Frame with no A/C currently renting for $550.00

3) 2/1 Frame with no A/C currently renting for $500.00

4) 4/2 Frame with A/C currently renting for $650.00

5) 3/1 Mobile with A/C currently renting for $500.00

6) 3/1/1 Frame with no A/C currently renting for $550.00

7) 3/2 Metal with A/C currently renting for $500.00

Property taxes for all seven units are 3,226.59 and annual rental income is $44,000.  The rent has not been raised in a few years and the landlord does not provide appliances for the units.  He is asking $190,000 for all seven units.  I would offer $170,000.  My questions are: Is this a good deal?  Im just not quite sure.  How would you structure the contract for purchase?  I would assume it would be best to do a commercial purchase contract.  And finally, would I be able to wholesale flip the deal in order to generate cash?  Thank you for all of the feedback.  I look forward to learning what everyone's thoughts are.

Patrick