44 units through 5 building
Hey BP multifamily,
I came across a potential deal in vero beach where a seller is offering 5 multifamilyunits totalling 44 units asking 2.6M. It's off us1 and near another major road but it's almost it's own,cul-de-sac. There's three single family homes all in great condition and much nicer than the apt buildings
I'm meeting with a bank president (family friend) tomorrow to ask general advice and discuss the deal. Here's what I have for a basic outline, any input and additional questions are greatly appreciated . My main concerns are
1. Type of tenant
2. Age of building (50 years)
3. Code requirements
4. Deferred maintenance list
5. Little to no value add
- 100% occupied with maxed out rent
Currently 44 units asking $60k per
-improving area . Central location
- relatively motivated sellers
- mostly fed subsidized (mental health)
- is it worth renovating and raising rents
- is it possible
- small Apts (mostly 1 br)
- option to hold and cash flow then repurpose as city changes zoning / vision
How do you finance a large commercial purchase like this
- % down / LTV
- amortization / ARM
- cash flow requirements
- inspection requirements
- special clauses for maintenance
refinance options later
Asset or personal info more important
Code requirements for commercial loan
Deferred maintenance list
-What are main issues with 50 year old apartment building ?