Tricky Portfolio - Bouncing Ideas
Hi all,
I've come across an owner that has a portfolio of 8 rental properties, all single-family. After discussions and a meeting with him, it seems his real goal is to smooth out cash flow and off-load management risk to begin to set himself up for retirement. I'm trying to figure out a win-win scenario, and was hoping to gain some experience and input from the community here. I'll be general on the details now, but we can get into the weeds in whatever direction this post brings us...
7 SFR properties -
Various market quality, from meh to promising
2 are in the meh market, and are rented through and qualified for a section 8 type program (but not section 8, as I'm made to understand it)
The 4 in the best markets all have traditional bank loans on them - roughly $925K of 'market value', $580K of debt (most LTV around 70%, one is at 35%)
The other 4 have no debt, and about $650K of value
All seem to be pretty low maintenance as far as structure, yard etc, especially with improvements made since acquisitoin
He bought these with a partner/contractor from 2010-2014, did extensive rehab to some, light rehab to others
All are claimed to be rented (leases to be verified), total monthly rents are $10,315, taxes in the area are around $1,600/month across the portfolio.
He is open to owner financing and/or some sort of master lease
He has a close relationship w/property manager charging him 6%
We would not like to commit a lot of cash to this portfolio