Commercial apartment building

[Sam Ojo]

I had recently met with a older gentleman in regards to 6, 5 unit buildings we spoke of in the past. He informed me they were recently sold for 1.8m.

After building some rapport, he offered a 23 unit brick complex in a solid location on the New Britain /Kensington line for 300k down then eventually lowered it to 250k down for a length of 10yrs @ 6% and wants 55k per unit.

He’s currently receiving $750 each unit w/ utilities included (rents vary from $850-1000 w/ utilities based on location in town). He stated his asking price is based on current market. After some small due diligence I noticed the units are spread between 4 buildings in which 2 of each share a common hallway/entrance. Some units are sold individually as condos and he owns the rest.

Besides bringing rents to market prices & refinancing, another exit could be selling each unit individually as condos within time. I needed some advice in regards to financing.

I can come up with about 100k of my own money and because my mom showed interest in the past thought of reaching out and seeing if she would put a loan against her 401k for the rest of the down payment. Even though I’ve heard of such a thing, not sure how it’s done? I would have her come in as a lien holder with interest or lump sum after a possible refinance. Another option is 50/50 partnership where I would handle all work. This is just one option before outsourcing to other investors for a cash on cash return on their money with this investment opportunity.

Im working on this opportunity as we speak so Any advice would be greatly appreciated, thanks for taking the time to read.

Sam

@Brandon Turner