All Forum Posts by: Matt Dawson

Hey Mike,

Great to meet you.  I'm in Lexington if you ever want to talk.  I've been actively purchasing for a little over a year now and we've acquired over 300 units in the Lexington area.  It seemed like rental property was really scarce when I started, but I've been surprised by how much is out there that people are willing to sell, but just not listed.

Matt

I have a seller willing to take a 20% seller carryback and a bank willing to take the other 80%. It's a 3.5 million dollar 104 unit deal with an NOI of $276k. The debt service will be $240k per year with the terms agreed to. So, with a $36k per year cushion, it seems like free money. Obviously, bad things could happen, but I'm able to absorb another $100k per year in a disaster scenario. The biggest issue I see is the 5 year balloon on both deals, but I feel fairly comfortable with being able to refinance into a single loan at 5 years as a significant amount of the loan will be paid down.

Can anyone talk me out of this?  What minefields are lurking?

Thanks!
Matt

I'm looking for properties in Lexington, KY.  Specifically, are there any wholesalers working in this area.  When I say properties, I'm really looking for multi-family, but I'll look at 1-4 unit properties as well if you have them.

Thanks,

Matt

(859)780-2898