6 Unit Apartment Building

[Jason Luongo]

To start off, I have never invested in multi family before. I own 1 investment SFH that has worked very well for me. After listening to Grant Cardone, I am trying to think BIGGER. I have been doing some research and I found this 6 unit for sale. What I really like about this property is its only 1 year old. Everything is basically brand new. See attached Rent Roll below. I like the area/neighborhood its in. Also, the rents can certainly be increased by 50-100, I found many comps in the 1,300 range. The ones that are 1200 good easily be raised to at least 1,250

With all that being said, I dont have 200k for a down payments. I have about 75k. So that leaves me with 2 questions,

1. Does this look like a good “deal”

2. If yes, how should I go about getting the rest of the down payment money.

[Phillip Faries]

Hi @Jason Luongo I agree with @Joseph Salegna the expenses do look a bit light. Also dont forget to include:

• Vacancies as a just in case, 5% of gross, 
• Property Management if you don't want to deal with the property yourself for the next X years, 10% of gross
• Annual Maintenance, good to budget the small surprise stuff, say 3% of gross
• Reserves, big stuff that will need replacing down the road,  5% of gross (this is not your money, its the house money that you don't touch. Only after you save a number you feel will cover most big stuff is when you stop.)

It seems you have done your own research on the location and numbers which is great, always work off of your numbers, not the ones provided to you. 

Regarding the extra $125k, work on lowering the price with the seller, Friends, Family, seller financing, a few small 20k loans from other banks, getting a HELOC on your current house, doing a cash out refi on your current house are a few that come to mine.

Good Luck!

Phillip Faries