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Updated about 14 years ago on . Most recent reply

Off - market 40 unit apartment Atlanta,Ga deal
A 40 unit multifamily apartment building in Atlanta,Ga.
Vacant in a C area.Apartment building is older and needs a complete rehab.
500,000 loan still on property but seller and bank wants to do a deal.
Estimate of 4 to 5 k a door to get up and running but could be less. Rents when it was operational was about 550 a month for 2 bedrooms.
40 X 550 = 22,000
22,000 X 12 = 264,000
50% expense ratio = 132,000 NOI once fully rehabbed and performing.
Exit sale price at an 11 CAP rate.
1,250,000
Resale costs.
6% commission
3% closing costs
112,500
Net proceeds:1,137,500
Rehab costs: 200,000
Initial acquisition buy price : 300,000 ( 7,500 a door )
Net profit upon exit: 637,500
I am not looking for go betweens or people that have no money that are trying to collect a fee.I am looking for DIRECT investors with cash ready to do a deal. I am direct to the seller.
I will be paid a 6% commission in the deal.
Thanks
- Joel Owens
- Podcast Guest on Show #47

Most Popular Reply

This must be in Rough areas--like West End or Stewart - Cleveland avenue-- Fix up will be higher than $5k -- This may be good for an
experienced Investor - dealing with Sect 8 Housing - who can get 203K type - Federal
Housing Grant or low interest loan -
There are many - i have seen in past at 10K to 15K per unit - in good areas -- 11% cap is too low- -
Joel --you had another in Dalton area --
What happened to that Pre-Foreclousre-- apartments -- they were priced high too--