Wanting to buy apartment complex for first property

[Casey Nelson]

Hello everyone,

My name is Casey and I live in UT. I have been wanting to get into R.E. for some time now but for whatever reason find myself failing to pull the trigger. Ultimately its prob fear and lack of support. Most everyone I know is terrified to make a move like this and thinks its a surefire way to end up broke and bitter.

I have been bouncing around ideas on what I want to do for my R.E. investments. Started with mobile homes, flipping, single family, apartments, back to multifamily, etc. One constant is that I would like to own and apartment complex as an end goal. Why? I don't know. Why do I like the color orange? It just feels good. 

Recently I have found myself backtracking on the big goal. I find myself saying, "Casey start small and work bigger", "You couldn't find financing for that" " You go crazy from  the get go reign it in a bit and be realistic". Then today comes and the real me comes out, not the sheep Casey, but the Casey that takes risks, that doesn't care what others think, that knows what he is capable of, the Casey that wants an apartment complex as his very 1st property. 

I decided to get on here and reach out to the community for a bit of help. I am not too proud to admit shortcomings in my knowledge. Since I do not have the background in R.E. like most of you I am not familiar with sacrifices, expenses, hurdles, failures, successes, hints, tips, and tricks to making something of this size work out. So I am asking for anything you are willing to share. 

So here is a look into the average apartment complex I have looked at. What I want to do with them. Also How I want to do it.

Price: 2-3.6million

units: 16-32

Taxes: 7.6%

Repair: Minimal in all 3 cases

Money down: ideally none of my own

Partners: None at the moment. Some family have shown interest in investing 200k total. 

ROI: looking between 12-23%. However I may be off on those since I am prob forgetting/not accounting for some expenses.

LLC: None

Property Management: Yes

Reasons: Long term financial freedom, Take care of my Mother and Father as they get too old to support themselves.

So here are some pointed questions to address if you would.

How can I get the money funded with no experience? I will need at worst case $1million.

How do I get the bank to lend that much money to me even if I have the down payment?

What expenses do you normally consider for apartments? Especially in the property management area? i.e. do I need an onsite manager that would be outside the traditional 10% fee of PM?

What would be a reasonable split with the investors as far as repayment schedule? 12 % is what i thought initially but that's 83k a year.

Anything would be greatly appreciated. I am sure i forgot to ask something. I know I will find more to ask in response to the comments. I have resolved to trying to avoid falling prey to other peoples fears and letting them sway my desires.

Thank You in Advance,