The Deal:In a nutshellOwner Financing of $1,350,000 6% 20 year AM and can refinance in one year
Thats 11.67 % cap rate on actual -My Equity raise only $300,000
27 units with mix of 7-3 bed 2bath, 7-2bed 1bath and 13-1bed 1bath
High rents from $935 to $2250 but lots of value add. Rents in area much higher
100% occupied with waiting list
Pro Forma with rent raise is $3,121,750
Over one acre and a need for storage units in the area. Dropping some containers would also be a great value add. Other amazing opportunities with this property.
Is it in fracking territory? If so you might want to check to see how long the Saudis can keep pumping cheap oil.
Value add is always a great way to go. Those rents are rather high for the size of the units. If it is on the west side of the state (near Williston) I would be concerned about the sustainability of maintaining full rentals. If it's east side near Fargo or Grand Forks, then I would say you're good to go for years to come. Numbers look good on the surface however, especially with owner financing at those rates. Feel free to PM me or call to discuss details in private. Those likely have to be brand new units to rent that high.
Zach is right - Location - Location - Location. North Dakota is a great state for investing but the ROI futures definitely depend on the location. The West end of the state (Williston area) has some major adjusting that it is going through due to the worlds oil market. Where is this located?