I am thinking of investing in a syndication that is buying a 157 unit apartment project located at 3117 S 192nd St. in SeaTac, WA 98188.It appears the property last sold in 2015 for $1.8Mn….the syndicators now plan to buy this property at a price that is about 60% higher and around 10.8X trailing 12 months gross rental income or 9.7X gross income projected over the next 12 months.They plan to renovate the units and increase gross rental income by 11-13% in each of the next two years and then level off at 3% annual rental growth thereafter.

And given the experience level of the note investor, this downside should be greatly alleviated, which is the value that they bring to the table.  

Any lower can be suspect, much higher indicates opportunity to improve NOI via value add.

I have excellent local contractors to do the work as well, and estimated repairs are around 15-20k keeping it on the lower to medium end.

If you don’t have a certain level of trust you wouldn’t jump into business regardless of how good the contract is. 

IE If they wanted to invest $10k, I might agree to pay them 8-10% once annually, or something a bit lower semi-annually, etc.

Market starts to swing downwards (lowering price) 3.

They had a lower credit score. 

It would just be interesting to see what debt load people justify for what level of monthly income. 

I live in Monroe, LA, which has over 50% of residents below the poverty level.