18 unit apartment off market deal and I need help!

[James Johner]

Have found a solid off market deal and need help! Details below.

Off market deal.

18 units.

3 buildings.

2 bedroom 1 bath units

Estimated purchase price $825,000

Fully occupied.

Value add opportunity during tenant turnover.

This building has a huge potential with cash flow.

Rents are way to low. Average is $500. Units across the street are same 2/1 renting for $850

Recently had a lot of exterior upgrades (new roofs, new paint, new vinyl on gables, a couple units have new hvac units).

Landlord currently pays for water. (Another value add opportunity)

Long story short, this deal has a a lot of green lights. I have 2016/2017/2018 PLs they are consistent. No real indication on why the current owners want to sell. I am looking at bank financing 80/20 split and struggling to come up with capital. What are some other finance options so I can make this thing work??!

Thank you all!

[Steve Vaughan]

Look up the sales history on your county assessors site.  See when they bought it and for how much.

Purchased a long time ago means probably own free and clear and need tax mitigation. Perfect for seller financing.  

Draft a friendly letter of intent/interest.  Offer a cash/mortgage scenario price (low) or a seller-financed price for more.  I usually offer 10% down at a 10% higher price.  Then make sure you own it while making payments.  Good luck.