Ohio Apartment BRRRR

[Matthew Gardner]

Hello BP!

I would love to find a partner with experience/financing! 

Highlights and my own thoughts/calculations right here:

Deal breakdown:18 Units: 1Br/1BaPurchase Price: $245,000 - Cash offers only

Need of full renovation - seller already installed new roof and vinyl windows throughout (would need your expertise opinion for renovation costs/time). Private Garage available for tenants.

Location: Downtown Springfield, OH - Wittenberg College (1.1 miles), hospitals, restaurants close byFinancials: broken down on page 8 of package and in following section.

Plan: Classic BRRRR method. Based on the financials (I went even more conservative than they did in the offering package) using $70k for NOI financed at an 8% CAP (I am assuming thats what banks will finance for), would finance for $875k... LTV of 75% on that would leave $656k and $218k in equity. Assuming we aren't able to negotiate the price any lower than $245k, that would leave a budget of just over $410k for the renovation project to leave no money in the deal at the end. (Maybe I'm slightly off for holding costs).

This should leave a good amount of cashflow after the refinance with expenses estimated at $4500-5000/mo and income around $10,000-11,000/mo.

At the moment I do not have finances lined up, however have come across multiple sites that offer Hard money for real estate lending. If a potential partner would like to come in on the deal with me, with the financing available, I did not want to prematurely lock in any other finances.

I would love to hear what people with a more experienced eye notice about the deal that I may have overlooked.

Thanks in advance!

Matthew Gardner

[Erin Dorsey Robinson]

Hi @Matthew Gardner At first glance, I'd say you left out the most important thing! You haven't said anything about yourself either here or on your profile. People want to partner with people they like and trust in addition to all the hard skills-it looks like you are pretty good with numbers. I see a white coat, doctor?  But, if the partner you seek is bringing the financing and experience, I would think their question would be, "how does partnership with Matthew (or anyone else if I have my own experience and $) increase my ability to succeed"? 

Food for thought. So, putting on my interviewer hat, tell us: Who is Matthew Gardener and what makes him a great partner if we find this solid deal?