I have a 72-unit apartment under contract in the Dallas metro that yields a nice, positive cash-flow. I intend to assign it, and I have a buyer (with whom I plan to partner/syndicate on other deals) who can bring at least 20%-30% (possibly more) equity to the deal. I also introduced that buyer to a lender that will sometimes fund deals on apartments at 100% LTV as joint-ventures; however, the buyer and lender ultimately didn't agree on terms. The buyer is still interested in this deal, but is running out of time.
Here's the deal:
Property type: 72 unit Apartment
Year Built: 1970
Rentable Area: 58,211 sq ft
Lot Size:: 124,823 sq ft
Current Occupancy: 89.19%
Purchase Price: $2,350,000
Cap Rate: 10.77%
Net Operating Income: $253,078.29
Pre-tax Cash-flow: $102,986.01
Earnest Money Deposit: $21,500
Down Payment: $470,000
Loan Amount: $1,880,000
Amortization Period: 30 years
Interest Rate: 7%
Mortgage: $12,507.69
Loan To Value Ratio: 80%
Debt Coverage Ratio: 1.5044
Unit Mix: 24 1/1.5, 47 2/2, and 1 3/2
PS: By the way, in case you're wondering why I didn't purchase the deal myself, I'm doing the assignment to build up my capital reserves--because I want to purchase something larger (200+) later this year.
