20 Unit Deal - Commercial loan questions

[Mark Doty]

Hey BP Community,

I'm trying to figure out how much cash I'll need to raise in order to obtain a commercial loan and be able to close on a light value add property.  He is roughly what I've come up with but would like input from the community.

$1M Property (12-24 units) - will need to meet or partner with someone who meets Net Worth requirement

25% Down

15% Reserves - 6 months of debt service + light rehab

I'm targeting the raise at $400K.  Does that sound too much, too little or about right?

10% liquidity after close  $75K

How much to allocate for the following:

Closing Costs (2%?)

Due Diligence / Inspections

Legal - to create LLP and PPM

What else am I missing?

I can probably achieve or partner with someone who will help with the Net Worth, Credit Score, Cash Reserves and am planning to buy something that will have a Debt Service Coverage Ratio above 1.25%, but I've never bought a commercial property before.  If I meet the other financial requirements will lack of multifamily experience be a deal killer?  Or do I need to knock on the door of smaller local banks?

I'm probably missing a few obvious things so please let me know if this fosters additional questions or discussion.