6 unit CT multifamily rent roll sheet help
Hi All,
Looking at this 6 units multifamily in CT, currently listed at $1.495M, trying to see if offering 1.25M is doable with the below assumptions. Made this rent roll pro forma w NOI, would appreciate any insight from seasoned commercial investors AND any help on a loan. This is is a very good area and would actually live in 1 unit, so 3-4k negative cash flow for living expenses is ok, as any house w mortgage would cost that.
https://docs.google.com/spreadsheets/d/1tfbjOlyVsGW3nHLVPk_R...
Key questions/assumptions:
- Total for this deal in cash is 300k, anything else (reserves, renovation loan etc) would need to be a bridge loan or hard money
- 1 unit is vacant and current rents are VERY under market, projected rent is what seller gave as realistic. After that I am using 5% rent increases with 60k renovation in yr1
- using 20% down around 8.5% rate, many loan officers keep telling that only 25% down is minimum.. idk
- yr1 goal to increase rents w renovation around 60k spend w 5% rent increase (tricky part it probably lot of rent lost while renovating maybe 2-3months)
- estimating that yr1 and 2 is negative CF and then projecting positive CF w yearly 5-10% rent increases
Any ideas if this makes sense or not? Anything missing? Not much experience w commercial multifamily but had a 2family w good cashflow for over 5yrs around nyc.
APPRECIATE ANY HELP thanks a lot!