- Joined
- Aug 26, 2010
- Messages
- 380
One thing we should encourage in REIN is the sharing of actual market info on real MF deals - so here goes.
This purchase is East Coast in a small community of 8000 that is the regional shopping and gov't center, and one with an strong rental market.
Its a portfolio purchase I have worked on for a long time as my next jump - identifying and targeting portfolios rather than single buildings. 52 units, 3 bldgs (2 X 18, 1 X 16) - 36 500 per door. 20 % vacant; current rent roll 23 K. Out of country owner with buildings facing 20 years accumulated deferred maintenance. But although ugly the units are large in very solid buildings, all co-located, great unit mix with five 3 bed units and five 1 beds that can be converted to 10 2 beds, plus chance to add balconies to 16 apts to get a big rent jump. Super efficient to manage. Most importantly, all units are separately metered with very low complex utility cost.
Most current rents 530 - 550 plus power; market rents after renos 750 plus power - goal of take-out rent roll of 39K per month.
General concept is to take 2 years moving the rents to 750 $ and refinance to take out the investor raised downpayment.
And a springboard for something larger.
The cash at close - if there is a sudden renegotiation to lower the price in the last few days after the mortgage has been finalized, if the bank likes you they may allow the mortgage to stay the same, resulting in a surplus at close. This netted us 15K in cash
Good luck.
This purchase is East Coast in a small community of 8000 that is the regional shopping and gov't center, and one with an strong rental market.
Its a portfolio purchase I have worked on for a long time as my next jump - identifying and targeting portfolios rather than single buildings. 52 units, 3 bldgs (2 X 18, 1 X 16) - 36 500 per door. 20 % vacant; current rent roll 23 K. Out of country owner with buildings facing 20 years accumulated deferred maintenance. But although ugly the units are large in very solid buildings, all co-located, great unit mix with five 3 bed units and five 1 beds that can be converted to 10 2 beds, plus chance to add balconies to 16 apts to get a big rent jump. Super efficient to manage. Most importantly, all units are separately metered with very low complex utility cost.
Most current rents 530 - 550 plus power; market rents after renos 750 plus power - goal of take-out rent roll of 39K per month.
General concept is to take 2 years moving the rents to 750 $ and refinance to take out the investor raised downpayment.
And a springboard for something larger.
The cash at close - if there is a sudden renegotiation to lower the price in the last few days after the mortgage has been finalized, if the bank likes you they may allow the mortgage to stay the same, resulting in a surplus at close. This netted us 15K in cash
Good luck.
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