Asking for valuable experienced perspectives on a hot lead

[Neil Louis]

I've identified a promising opportunity: a 40-unit multifamily asset with significant value-add potential. The seller is seeking $3.5M with an assumable loan. Key details:

- Existing debt: $2,038,000 at 3.8% with 7 years remaining

- 92% of units already upgraded

- Recently implemented RUBS program

- Strong occupancy in a growth market

Given the current debt structure and property improvements, this asset presents an attractive cash flow opportunity with potential for further optimization.

I'm considering structuring an offer that leverages the assumable debt while providing an attractive exit for the current owner. My initial analysis suggests a conservative offer in the range of $3.2M to $3.35M could be justified, factoring in current market cap rates and the property's upside potential.

I'd appreciate any insights on:

1. Strategies to bridge the gap between our valuation and seller expectations

2. Creative financing options to enhance returns

3. Key due diligence focus areas for this type of asset

Any experienced perspectives would be valuable as I move forward with this potential acquisition.