80 Unit Deal under contract

[Jacob Trimble]

I apologize if this is going to be a long post. 

We currently were brought a wholesale deal for 7 apartments (80 units) in Elizabethton, TN. To start off with here are some numbers: 

Purchase price: $2.2 million

Estimated Rehab: $150,000 (15 units need work to become rent ready) 

8 cap current value: $2.9 million (with 20% vacancy)

8 cap proforma: $4.1 million (5% vacancy)

Preferred close: Feb 28th (We know this is a very short window so conventional lending is not an option. We have already discussed pushing this back so this is not a strict deadline just preferred). 

We have already talked to management companies in the area as well as contractors to price out repairs on the vacant units. The area where most the properties are located is on the main street. According to our property manager they are at virtually 0% vacancy currently because demand is so very high due to people wanting to move more out of the bigger cities etc. The properties have deferred maintenance and a reputation for not being the greatest properties. The property has just about everything we were looking for in a property as far as force appreciation, below market rents, off market, and under market value. 

The issue is I have experience in single family homes/out of state rentals but none in apartments. We are in one of those "master mind" groups where the individual helping us has a ton of commercial real estate experience and he is helping us through this process. However, we wanted to come on BP and get some other opinions on things like how to fund these types of deals etc. The initial plan is to use hard money and then raise the other money using a syndication. We have already talked to attorneys as far as setting up the PPM. We have approximately two and a half weeks before our earnest money goes hard. So I am trying to figure out all of our options within the next 10 days so we have plenty of time to pull out if it ends up not working out. Any advice or insights would be greatly appreciated and I'm sure I left some important stuff out so let me know and I can add it to this forum. 

Thanks, 

Jake