Help first real deal possible

[Randy Jones]

Hello so I found a house in Baltimore. It was on Craigslist for 17k already rented. Non section 8. I contacted the seller and he answered some of the questions I had. He is a wholesaler and has a total of et. 6 properties in the same area. 4 out of 6 are NOT rented. I am personally interested in rented properties. Here is the breakdown. I am trying to figure out if it is a good deal and what I should be asking or how should I be running the numbers. House 1 3br/1ba tenant occupied $750 per month asking 17k House 2 3br/1ba tenant occupied $900 per month asking 17k The others need "lite rehab". He said he would sell all 6 for 100k. I just need some help wrapping my head around this.

[Daniel Hanson]

Hi @Randy Jones,

I think for your first deal, keep it to one property to make it easy on yourself and limit your risk of making mistakes and getting overwhelmed.  Especially since the 6-property deal for $100k averages to 16.6k per property anyway.  Also 4 of the 6 are not rented, so you would scrambling to find renters on 4 properties and doing lite rehab. 

Would these be cash deals for you? My assumption, and I could be wrong, is that the bank won't finance on these.

Definitely get a walkthrough on all 8 houses.  Then you can judge for yourself from an education perspective what "lite rehab" means.  It's quite possible that the houses that are rented need just as much rehab.