What would a seasoned investor do with this deal….?
I wanted to get some feedback on what seasoned investors would do given the below mentioned projections offered in a 65-unit syndication:
65 units recently remodeled/upgraded insides built in 1992 – 2000 (Class C)
Tertiary Market 3min from a medium size university (~11,000 students)
New roofs, New siding, New parking lots, Some new HVACs
4% Vacancy Rate due to units finishing remodeling
Listed Cap Rate 8%
Value Add: Rents are 20 – 25% below market
Projected returns:
Exit Strategy no more than 5 years
65/35 Equity Split
8% Preferred Return
17 – 18% Annual Average Return
15 – 16% Internal Rate of Return
10.9% Average Cash on Cash Return
87% Overall Return on Investment