Opportunity to Purchase 5 homes for under $70k. What should I do.

[Batista Thomas]

I am just starting out in real estate and I've come across what seems to me as a great opportunity but wanted some advice from seasoned investors before moving forward. An older couple, in their late 80's would like to sell some homes that they own. The issue is they will only sell in bundles. I am currently thinking of purchasing 5. Two are assessed by the tax assessor at $15k, two at 13k and one at $7k. As you can imagine the houses are not in the best neighborhood and are very old one was built in 1904, none built after 1960. All are currently occupied with renters who have been in the homes for over 7 years one for 20 and the current owners collect $300 in rent from 3 tenants, $250 from another and $400 for another. That is more than enough for taxes, mortgages and expenses. There will be upgrades that I will have to make and I will factor those in once I see the inside of the homes. There are several issues. The current owner is a landlord she collects money, she negotiates the rent when tenants can't pay and she accepts late payments. She has mentioned numerous times how the current tenants see her as a friend and she is not tough. The neighborhood is not a war zone, it doesn't even have a large crime rate, however it is not in the nicest part of town.

A little about me. I am a newbie investor who has conducted tons of research and know that I am interested in investing for 99% cash flow. I would like to buy and hold. I have no interest in being a landlord, I only want to own properties. I currently own 1 rental managed by a management company and it has a great tenant, in a great area and its pretty self sufficient and has a cash flow of $300 a month. I would definitely hire a management company for this new deal if I go through with it. The homes are about 2 hours away from where I live and as I mentioned before I have zero desire to be a landlord.

So with all that being said, my questions to seasoned investors are,would you pursue this deal? What are your concerns (I know the upgrades are a concern but I just don't have that info right now. The current owner says the tenants don't want her to paint the walls or put down new carpet.)? Are there any questions I should ask? What would make this a better deal? Thanks in advance for your feedback.