Package deal that doesn't make sense... Or does it?

[Sean Cassidy]

So, here's an interesting thing I came across recently. 

I've signed an NDA so can't share locations, addresses, etc. But numbers to a theoretical deal.

Like the title says, those are the properties in a nutshell. 17 are rented currently, most have been rehabbed recently. There are 2 vacant and ones a scrape. The 2 vacant properties need some finishing touches and both are duplexes I believe. 

Of the 17 that are rented the rent last year was a hair under 91k

Expenses totaled just a hair over 30k not including mortgage.

Asking price is 945k, which for that income is laughable in this area and would make my lenders lose faith in me. 

But, in a conversation with one of my team (we were bored) we tried to find ways to make this one work. 

The first idea of course is to get the seller to cut the price by about 50%, we know how much they owe on this stuff and so that was floated, and of course dismissed as also insane.

Second idea, get seller to finance the whole thing, 100%, in two notes. A 1st for about 60% and a 2nd for the rest. They could sell the first position note (which would be at an attractive rate) and hold the 2nd (which would be as close to negative as I can get it) but even then running 19 buildings for a few grand a month seems pointless when there's easier money here. 

But, what if we got really creative. I'm not about to shell out 20k for the due diligence on 20 properties that don't make me a some actual money. I would however, resell them on a note to the people renting them. This moves taxes and insurance off my shoulders, creates interest and relieves me of maintenance in any form.

All the properties are close to each other, so once you sold them all off and registered the land contracts with the county you could sell the notes and walk, right?

Anyway, I don't intend to do it because it would create a full time job for the next 6 - 9 months and I don't have the cash to plunk down for that kind of thing. But what do you guys think?