What to expect, large Deal

[Jay Barndt]

hi all, first off this deal scares me, not that it is bad but that it is big, there is an investor that wants to unload his portfolio of rentals and retire i received a voicemail and email from the investor containing the info and he asked if i would be interested, i definitely am but i look at the size of the deal and the potential for growth i feel as if im looking at a giant, bordering paralysis/analysis. located Near Bradford, PA and he is open to creative financing, so here are the numbers.

asking $585,000  - market value 750-800k

10 properties totaling 36 units

Gross rent $229,320

Taxes- $26,200

Ins- $13,225

maintenance- $17,515

PM- $34,164

Utilities- $72,337

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NOI- $65,870

now i plan to swallow my fear and call him tomorrow with a already large list of questions, all of the units are on a month-2-month lease and he has had 95% Occupancy over the past 10 yrs. all properties are in the same town in a decent area (C+   B) and are rented ( 500-550 ) quite a bit blow ave rent for the area ( 650-800 ) so definitely room for growth, in addition i want to figure out why the utility expense is 72k.. that's nuts i am assuming he is picking up a lot of the utilities so with some adjustments to management, rents, expenses i see a great opportunity.

i also ask what due diligence should i do on the PM since they have one in place and what should i expect in the transition if we move forward i currently manage my 3 units myself an see that 34k and wonder if i could handle the management or see how i can tighten up the reins on the PM to get things moving for optimum cash flow.  

feel free to ask away any questions you may have i will do my best to answer and any incite/advice on the matter is greatly appreciated. thanks!

Jay,