Need Confirmed ROI % on this Multi Family Evaluation
Does our answers match? What is the ROI on this property?
Details:
We are on a 50/50 split and Investor requires 12% ROI annually as a partner...Does this PENCIL?
This is a 102 unit, C+/B- MF property
1st year: Current Numbers upon Acquisition
Purchase Price: $6,000,000
Money Partner Funded: $2,148,000 cash by Investor group ( Includes 30% down payment, 1 point & 3% CC of $4,200,000 loan, plus 3% sponsor acquisition fee) Loan will be secured by ME. Making us 50/50 partners.
Income/Expense Analysis
GPI: $836,604
GOI: $828,682
Total Operating Expenses: $468,793 (56.6% of GOI. Includes Reserves @ $250 per)
NOI: $359,889
Annual Debt Service: $270,558
Cash Flow Before Taxes: $89,331
2nd Year: After Repositioned and REFI Within 2 years
GPI: $957,780
GOI: $949,858
Total Expenses: $406,592 (42.8%)
NOI: $543,266
Annual Debt Service: $270,588
Cash Flow before Taxes: $272,708
DCR: 2.008
REFI 80% after 2 years at 6 CAP: Value is now $9,054,433
Sale Cash Out (Pre Tax): $4,854,433
80% REFI proceeds: $7,243,547
REFI Cash Out: $3,043,547
Total Equity After Paying Back Investor Funds ($2,148,000) Not Including ROI: $895,547
Total Cash Flow after 2 years: $362,039
We are on a 50/50 split
Question for the great financial minds in this group...What is the "TOTAL" ROI for my investors?
Thank you for all who step up and help out in advance:-)