First time investing in multi-family aparment and few questions

[Mtgtme Mtgtme]

Hello: I was offered to invest in a multifamily apartment in Dallas.here are the details: 256 Units apartments in southeast Dallas submarket. Average unit size 850 Sq Ft Property is situated on high traffic roads 175.$900 K spent to renovate the exterior and amenities. Value add opportunity to upgrade the 82% of units. 

5-year business plan with 15%IRR with 8% cash on cash. Cost segregation initial study is done and 50% depreciation can be taken in year 1 with bonus depreciation and 80% in 5 years. An additional upside is not included in the underwriting (upside from the laundry room).Assumption Loan is approved for 79% LTV. The minimum investment is $50,000. A management company will be managing the property.

Here are some questions.

1.I did not understand this paragraph at all. 
5-year business plan with 15%IRR with 8% cash on cash. Cost segregation initial study is done and 50% depreciation can be taken in year 1 with bonus depreciation and 80% in 5 years. An additional upside is not included in the underwriting (upside from the laundry room). Assumption Loan is approved for 79% LTV. 
Can someone share your experience?

2. Also is it a good investment? What questions should I ask? What red flags should I look for.

Please let me know.

[John Drowns]

@mtgtme mtgtme

I concur with those above that you need some more education before getting into this type of deal. Further down the road, you definitely want to understand the net rents and the rent comparables to the subject property. One quick example from what you provided is what kind of premiums are the comps getting on their upgraded versus non-upgraded units? Are the projections on the rent for the upgraded units at your subject property achievable given that knowledge? That sort of thing. Obviously, track record of whomever is the syndicator is most important. If they have a good reputation for not over inflating assumptions and have been around through a few cycles, you may be able to get a good feel for how they can perform. If they are good at what they do, they aren't going anywhere and they will continue to present good opportunities, so you don't have to feel like you "missed it". Use the "Education" tab and then research some of the metrics used in evaluating CRE (IRR, Equity Multiple, Cash-on-cash). Hope this is helpful.