Multifamilly deal in Eastern NC

[James Johner]

Hello all.

We have recently drummed up a potential deal in Eastern NC on an 18 unit apartment complex. There are three buildings with 6 units each, all are 2 bedroom 1 bath. Property is located in a B+ area and apartments could use an update from their current C+ appeal. Definitely some value add opportunity on this deal. This will be our first “existing” multi-family deal and just wanted some pointers from anyone that has gone into a similar deal.

Offer $745,000

Rental rates $800

All of the units are individually metered on all utilities.

We plan to pursue financing via a commercial 5 year balloon loan amortized at 20 years.

This puts us in a good cash flow position but wanted to just put it out there to see if anyone had some experience they would like to share. Thanks all