Apartment Analysis To BUST Into The Commercial World!

[Ryan York]

Hey all,

We're super interested in getting into apartments, but I'm struggling on a few things when it comes to the analysis. 

1. When considering work that needs to be done to the property, such as remodeling rooms, should we consider that as upfront money or somehow spread it out in our analysis? I know investors often do a few rooms a year or something like that. Obviously, having an additional 80k in expenses added on to the purchase price makes your cash on cash return and overall ROI look a lot worse. How would I go about factoring that in over say 3 years? Subtract from cash flow maybe??

2. We're looking at a property that would cost us about 600k plus the repairs. We don't have that kind of scratch so we'd need a loan. We would probably put together some private money in addition to a commercial bank loan. Who should I consider approaching first, bank or private money? 

I've attached our current analysis below. It's a work in progress so feel free to pick it apart! 

Any other input would be greatly appreciated as well.