Newbie buying 17 units

[Chris Loyd]

HELP!!!!  We have all heard Brandon talk about the stack and buying 1 duplex, then a 4plex, then an 8 unit, then a 16.  And that 16 doesn't seem so daunting after you already have 13 units.  Well, I have currently bought 0 units.  Additionally, we all hear about you do deal #1, then deal #2, eventually running out of funding but you keep finding deals and eventually have to utilize hard money or some other means of funds.  But all of that learning has already happened on the first # of deals and the fear of being a landlord of 17 units is gone and you are free to do a 17 unit deal.

Well, I have been presented with a 17 unit deal, eventhough I own 0 units, if it works out it should make for an interesting podcast one day! In the meantime, please help. It is a $1,400,000 17 unit deal. I think they will come down to $1,200,000. Making every unit around 70,588 each. The smaller 7 units rent for $750 each and the larger 10 units rent for $850 each. Technically there are only 15 units completed the other 2 are being completed this month and there is a waiting list to get into them. These are all brand new builds (I am assuming low maintenance and CapEx). These meet the 1% rule, and while on a door by door they cash flow around 187 per month (with high conservative estimates of expenses); in total they make quite a bit, $3,179. Of course that is making some assumptions related to financing (WHICH I HAVE NO IDEA HOW TO GET ON SUCH A LARGE DEAL). I really don't know is that going to be 5% for 30 years or 15% for 10. No idea, the later probably doesn't work. I do have around $200k in cash that I can utilize; however, I would prefer not to utilize ALL of my available funds on this one deal, oh and this would require probably 240 - 260k.

Anyway, all of that said; if you have any advice PLEASE Share.  I am using the biggerpockets calculator to analyze the deal.  Are there more complicated calculators I should be using for such a large deal?  it isn't like this is an apartment complex.  This is 17 single family homes.  So, my thought was the normal one would work it is just bigger numbers.

Also, any idea on hard money. Will they lend to a 0 deal guy/gal? What do the rates look like and how long of terms do they give. Any other advice. Also, anyone want to purchase them 5 years from now? I will give you a sweeet deal! The CoC on these up front (assuming my assumptions are correct) is north of 15% and the annualized return is 20%. Seems like a no-brainer, but again I have NEVER done this and especially not at 1.4(or hopefully 1.2) Million! This seems crazy. I keep telling myself this is just you doing the other deals 17 times (just in 1 day).

Thanks in advance!