Commercial Multifamily Investment Opportunity - Advice Needed

[Account Closed]

I would appreciate your feedback on this commercial multifamily opportunity I am evaluating

YTD Rental Income $57k

YTD Expenses including water, taxes, Insurance $27k

NOI $30k

The property is currently being mismanaged, potential gross income is approx $13k.

Would a financial institution look at this opportunity favorabily; would they look at the current/potential rent roll and P&L statements to make their decision?

Thank you!

[Joel Owens]

A local bank might like the value add deal because they have a deeper understand in the area to make a loan. It's too small for a national bank to want it with those issues. A regional bank may or may not go for it. Typical for a local bank is only a 5 year note term which is not that attractive.

It will come down to how much money you are putting down and your reserves for this project.

I think your costs will be higher. The current owner might not be repairing anything which is how they show their current NOI numbers. You will have to go in and do a ton of capex to turn this around most likely.

How much are you putting down??