Seeking Capital Partner for 12-Unit Indy Deal w/ Verified NOI & 7.5% Stabilized Retur

[Patrick Lismon]

Hello everyone,

I've finished underwriting a compelling 12-unit deal in Indianapolis and am seeking a capital partner to fund the acquisition. This is a Class B property that offers a great blend of stability and immediate upside.

The Numbers:

Purchase Price: $1,950,000

Current In-Place NOI: $121,086 (6.21% Cap Rate)

The Plan: Lease up 2 vacant units.

Stabilized NOI (Year 1): $146,883 (7.53% Return on Cost)

Total Equity Needed: ~$581,000

This is a well-managed property with a low 22% expense ratio and a strong unit mix (11 two-bedrooms). The "value-add" is a straightforward and low-risk operational improvement.

I have a full one-page summary and pro forma ready to share. If you are an investor who is looking for a secure, cash-flowing asset with a clear growth component, I'd be happy to connect.

Thank you,

Patrick

[Stuart Udis]

The expense ratio of 22% is alarmingly low. A lean vacancy rate of 5% and management fee of 6% leaves you with 11% to cover repairs/reserves, property taxes, insurance, common utilities, snow/landscaping? I find that hard to believe. This means your NOI will be much lower than $121,086 with accurate expense ratio (likely 35%). Consequently, the cap rate is off. Leasing the additional units doesn't move the needly enough either. You will need significantly more than $581K to take down this building based on revenue. Lenders will be looking for DCR covenant of at least 1.2%. There has to be huge rent increases available with limited improvement cost. Numbers otherwise will never pencil.