Portfolio Deal Analysis

[Mack Lane]

Found an opportunity to get into an investors portfolio and wanted to run it by the group.

4 - 2/2 Duplexes 142k each, renting for 1400, 1440, 1465, 1475. 

1 - 3/3 Duplex 190k, renting for 1950.

Negotiated the 2/2's for 125k (verbally), and haven't locked up the 3/3 yet (likely to come in at 175).

Owner financing, with 20% down. Owner will hold mortgage for term, 20 years @ 4% pegged to prime, can't repay before 2 years.

Not overly pleased with the loan terms, but I feel they are tolerable. Will try and negotiate a 30yr fixed. In which case all these numbers would come into a completely acceptable range.

20 yr variable @ 4%

Expenses for 2/2's: 1242.15/mo

Cash Flow : 207.85/mo

COC ROI: 9.98%

Expenses for 3/3: 1623.47/mo

Cash Flow: 229.71/mo

COC ROI: 7.88%

Trouble I'm running into, is coming up with all the down payment. I have most of it but don't necessarily want to lay out all that capital at once. Looking for creative suggestions as to perhaps buying a couple with owner financing and tying the rest up with Lease Options (say 2,3,5 year options) to buy down the road. Is there some other method I'm not thinking of? Anyone had a similar experience? Happy to hear any and all advice.

I'm sure there are details I've left out, will try and answer any as they come in. Thanks!