Prospective deal - would like your thoughts

[FrugalSaver]

An absentee landlord has 3  properties they own from out of state but Within 30 min of where I live.  All 3 < 10 years old and have renters In them on leases ranging from 12 Months to 36 Months.

The properties are in a very nice area and total rent is about $ 8,000 per
Month. He would like to sell them for $1mm in total. Based
On tax rates here and expenses and property mgmt etc the cash on cash is about 8%.

The likelihood for appreciation is big on these but I don't ever invest for that purpose. My other rentals are about a1/3 the price Of One of these 3 and cash on cash is 12-15% for my other properties.

What thoughts or pitfalls would you think exist?

How would you finance the deal?

[NoNonsenseLandlord]

If they truly return 8%, and are class A properties, that is not too bad.

If you are managing them for free at that return, and you do not take into account ~10% of rents for maintenance and a 5% vacancy allowance, then it is not a good deal.

[Cwadda]

Offer $800k. You have nothing to lose. You could also ask for a valuation breakdown if he wants to sell individual properties and then just take the one or two you think is the best deal.

[FrugalSaver]

Thanks for the thoughts everyone.  I'm continuing to chat with the seller.  I'll keep y'all posted.