Apartment Complex Financing
Hello BP,
I'd like to first say that I am working with my father on this deal. It is a 66 unit apartment complex with garages for extra income. He is actually doing the accounting and management full time for the current owner, who is ready to retire and travel. Our only issue is the financing aspect, which we would like to avoid pursuing seller financing.
I'll get right to the point; here are the numbers (calculated without P&I):
Purchase Price- $5,000,000
Monthly Income- $49,800
Monthly Expenses- $21,800
Monthly Cashflow- $28,000
Annual NOI- $336,312
*This is just an extremely condensed format of a 4 page income statement. I have accounted for maintenance, turnover, payroll, bad debts expense, insurance, marketing, and various other miscellaneous expenses. The only expense that I did not include is the principal and interest.*
I would like to poke around to see if there are any options other than seller financing or traditional financing. Traditional financing of the full $5M at 4% would turn the annual NOI into around $52,000. This is feasible, but we would like to explore other possibilities.
I am extremely interested to see what anyone has in mind for this deal. I would be happy to include anything that may be missing or unclear.
Thank you all very much for what you do for this community and Happy New Year's!!