How much to raise in additional to the down payment for APTS?

Multi-Family and Apartment Investing
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How much to raise in additional to the down payment for APTS?

Cody Dover
Rental Property Investor · North Little Rock, AR · Member since 2016 · 82 posts · 19 votes

When raising money for apartments,

How much would you guys factor in when raising funds to set aside per door?

This isn't just for fixing the place up, more so setting it aside

That you perhaps won’t need to go back for a capital call..

Thoughts appreciated!

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  • Hadar OrkibiPro Member
    Rental Property Investor · USA / NZ · Member since 2016 · 1k+ posts · 812 votes
    8y

    It depends on the size and condition of the porperty.

    Are you refering to Syndication?

    some lenders ask you to put some capital in reserve account while some investors do that anyway, by alocating 7%-15% of gross rent towards Repairs and Miantanance. 

    And some allow $250-$300 per door per year.

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  • Cody Dover
    OP
    Rental Property Investor · North Little Rock, AR · Member since 2016 · 82 posts · 19 votes
    8y
    Yeah it’s syndication. We have been running our numbers based on a 25% down payment plus an additional 5% of purchase price so 30% all in all invested. But this would be for just normal operating capital. Not sure if there was an generic industry number people used.
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  • Alina Trigub
    Rental Property Investor · Glen Rock, NJ · Member since 2015 · 3k+ posts · 2k+ votes
    8y

    @Cody Dover As @Hadar Orkibi already mentioned, some set aside $300 per door. You should also call the bankers and ask them - they are the ones that will be issuing you a loan so they set their terms as well!

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