Off - market 40 unit apartment Atlanta,Ga deal

[Joel Owens]

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

[Champak Shah]

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--