Updated over 6 years ago on . Most recent reply
Would you partner with this investor? I’m nervous.
He is an experienced investor who I’ve wanted to partner with for a while. He seems to be very successful. He is asking for $100,000 Hard cashup front. Looks like return is 8% cash on cash. I need guidance. These are the details:
64 unit complex $2,375,000.00
Total loan amount $1,995,000.00
Down Payment $380,000.00
Upfront repair costs $300,000.00 (all new roofs, curb appeal, and vacant units)
40 2 bedroom @700.00
24 1 bedroom @600.00
Gross annual rental income $508,800.00
10% vacancy $50,000.00
Effective gross income $457,920.00
Expenses:
Insurance $12,000.00
Taxes $11,800.00
Utilities $60,000.00
Dumpsters $9,000.00
Accounting $7,000.00
Maintenance Reserves $38,000.00
Management $40,500.00
Total expenses $178,300.00
NOI $279,620.00
Financing $154,245.76
75 / 25 split Roughly $94,030.68 / $31,343.56
8% cash on cash return for investor
$10,000.00 needed up front and the remaining at closing
Most Popular Reply
Business relationships are like marriages, if you're questioning if you should do it, don't do it. Maybe it turns out good, but maybe it turns out horrible and it is a very messy, expensive and drawn out divorce. Is the risk of the second worth reward of the first?