18 Unit Apartment Complex Analysis HELP!
BiggerPockets Community I NEED YOUR HELP.
So I am looking at this 18 unit apartment complex to buy as my first deal. I know it's a huge jump but I am diving head first into this investing stuff and just realized how much I still have to learn just by talking to the gentleman who is selling the property who was just blowing me away with knowledge and could sense my inexperience over the phone (He does own 5 apartment buildings so maybe one day I can work from him and pick his brain.) Anyhow I am up for the challenge.
So enough about me and on to the property information:
Asking Price= $1,500,000
Recently renovated with:
New 30 year shingle roof
New Pex Plumbing
Updated wiring
Thermal Windows
2018 2 Ton HVACs
Brand new appliances in all units including washer & dryer
Granite Counter tops in Kitchen and Bathroom
18 units each 2 bed/ 1 bath, 795 square feet
They are estimating each unit will rent for $800/month.
Here are my number I have worked:
Annual income at full occupancy= $172,800
Annual Property Taxes= -$1,416
Annual Insurance= -$5,000 (the owner of the property said this was his best guess)
Annual Property Managment at 10%= -$17,280
Annual Maintenance/Cap Ex at 20%= -$34,560
Annual Vacancy at 5%= -$8,640
Annual Landscaping costs= -$1,800 (current owners rate)
Total Annual expenses= -$68,696
NOI: $172,800- $68,696= $104,104 before mortgage.
GRM: 8.6
Cap Rate: 6.9%
Based on this information it seems like a decent deal I am just lost about finding a commercial loan and where to even start in this process. I would love to find a limited partner with the money and experience who will allow me to do all the leg work and just answer my questions along the way. What are your thoughts and tips BiggerPockets? Where do I start?