Multi family numbers on specific deal.

[Paul Guilbeau]

My partner and I are very close to closing on approximately 2.4 acres of land just outside of Houston.  We have met with city officials and they are very eager to get more development in their city.  I have done the numbers about 100 times, listened to every podcast I could find, but want to get even more eyes on this deal.

The cost of the land, development and building will come to $700,000

Annual rent income will be about $120,000/year.

Taxes, Insurance and other expenses will about $20,000/year

Since it is a new building, we anticipate a cap rate of 8%

So once full, as I understand it, the building is now worth $1,250,000 ($100,000 / 8%)

As I understand, we can cash out REFI for say 70%, which would give us $875,000.

This means we would now have $175,000 in additional funds to go do this again.

Am I missing anything here ?