My brother and I have a 6 unit Multi Family deal under contract in Dallas. The purchase price is $95,000 and the cap rate comes to 10% (semi verified), with room to increase! We are planning to assume the current 1st trust deed - $41,000. Seeking a lender or partner to help bridge the remaining $54,000 gap.
-We have wired a $5,000 deposit
-The contract allows for 5 days of due diligence, ending this Sunday the 22nd
-Our home inspection will be performed tomorrow, Saturday the 21st at 12:00 P.M. CST
-In addition to the pending inspection, we have already received copies of each lease, receipts for expenses and the contact information for the current property manager & live-in maintenance individual. Assuming things go well with the rest of our due diligence, we will be required to close escrow by the 31st.
Here's a breakdown of current gross receipts:
Unit 1 - $600 - leased
Unit 2 - $400 - leased
Unit 3 - $495 - leased
Unit 4 - Occupied by maintenance man ($500 market value if leased)
Unit 5 - $500 - leased
Unit 6 - $495 - leased
TOTAL $2,490 / MO. (or $2,990 current market rent if fully leased)
Vacancy factor 10% - $249
Maintenance materials - $249
Gas 1 meter paid by landlord - $110 avg.
Water 1 meter paid by landlord - $135 avg.
Property insurance - $129
Property taxes - $259
Property manager - $450 flat feet (high!)
Trash paid by landlord - $89
NOI before debt service = $9,830 (33% of gross receipts)
/divided by $95,000 purchase + $2,000 cc
If you have an interest in helping us close the deal and/or would like more information, please reply ASAP. Thanks!