Help me Analyze 14 SFH Bundle - Seller Financing

[Mo Farraj]

Hi All,

I was offered a 14 SFH bundle under seller financing (terms still to be discussed) in West Philly, and I would like everyones opinion on the financials. The cap rate sits at about an 8%.

However the neighborhood looks to be in a C- area, I am unsure if this is worth the investment. How can I structure this deal to be worthwhile? Should I use the potential 5%-10% down payment and invest else where (this question might apply to investors in Philly since you are more familiar with the current crime/economic conditions)

[Jimmy O'Connor]

@Mo Farraj this all depends on where exactly in West Philly you are. Rule of in West Philly is that if you are below Market, you want to be as far south towards Baltimore and east towards U-City, the big jump in properties you'll see due east of 52nd street (just due west is prime time BRRR Cobbs Creek). If you are North of Market you want to be as far north towards Lancaster Ave as possible. The cut off for here is 42nd street for high property values up until you get into the nicer park of Overbrook.