Help needed with large MFA deal analysis

[Sorin T]

Hi there,
I need some help analyzing this following deal in CO Springs. Your input is greatly appreciated.

Multi apartment buildings, around 100 units total, 80+ 1BR/1Ba, 20 2Br/1ba, laundry, parking, pool, clubhouse, the usuals
Average apt 520sqft, $500 rent, $250 deposit (current numbers, about fair for the area)
Not a great area, "C" grade apartments, 80% occupancy
Buildings in foreclosure, sold by the bank - i.e. no solid records on maintenance , income, expenses, turnaround, etc. All I know is new roof in 2009. Few apartments advertised for rent look decent though.
Complex was last purchased in 2011 for 36K/door and 5.9%. No idea how much they financed, maybe everything. Therefore, the foreclosure

My thinking is to try and get it from the bank somewhere at 20-25K/door?
Will use professional management company to manage it and keep it under tight control (no drugs, etc)
My partner and I are not experienced in large deals like this. I've done several flips and owned a rental for several years, he's also landlording several units for a few years
We're both trying to make the jump to the big leagues
We both have good strong credits and able to come up with 25% down for a commercial loan for this

I know ideally we'd stay away from grade "C" apartments to start with, but the alternatives are much more expensive, and few
Is this a good deal? At what price to make the deal work?
Should we be able to get financing for this with our apparent lack of experience, but solid credit and 25% down?

Anything else I should consider?

Thanks in advance for your input

[Michael Roy]

Would need to know the NOI, but based on 80% occupancy, $500/door rent, and assuming you profit 40% of revenue, I think your assessment is close at 20-25k/door. This seems like a fine deal.

At 80% occupancy, I would see if there are any general improvements that can be done to the apartments that would increase vacancy 5-10%. THEN, instead of trying to capture that 5-10%, increase rent 10%. Your vacancy may drop or remain stagnant, but revenue will increase. 

The bank wouldn't have financed the whole amount, but they probably financed 80-90% and assuming it was paid on for 2 years, then the balance is 75-85% of original amount, which would allow for you to offer $27-30k/door which I think works. A bank generally won't sell below the balance amount unless the committee has ordered they get it off the books. Finding out if that is the case is hard. 

Good luck to you. Hope it works out. Sounds like a fun deal.