under contract need financing

[Remone R.]

We are currently under contract on 17 townhomes (being sold together) in Arkansas. Having issues with traditional

Contract price - 495k (29k per unit)

G.I. - 87k ( with 11 units occupied & 6 vacancies, with out of state owner)

Expenses 

Utilities - 8,800

Taxes - 6439

Maintenance - 9,050

Supplies - 7,508

Insurance - 7,408

Pest Control - 3,186

Landscaping - 3,709

NOI - 40,900

Cap rate - 8.2%

Proforma 

G.I. - 158,400 ( Rentometer market rents (13) 3bdrs & (4) 2 bdrs)

Less Vacancy - 5% - 7,920

A.G.I - 150,480

Expenses 

Utilities - 7,503 (2bdr units)

Property Mgmt - 12,672 @8% of total rents per month

Taxes - 6,439

Maintenance - 15,840 @10% of G.I. (with reserves)

Cap Ex - 7,920 5% of G.I.

Supplies - 7,920 @5% of G.I.

Insurance - 7,408

Pest Control - 3,186

Landscaping - 3,709

NOI - 78,243

Cap Rate - 15.8%

C.O.C - 29% (after debt service) & (rehab costs)

This property would need rehab of the 6 vacant units and exterior work. Roughly 60k after walk-thru, but 

will know exactly after inspection in a week. Definitely a value-add property

There are comps (Zillow) in the area approx 55k for similar units

Any help appreciated