Purchasing first commercial loan property

[Yaniv Yarkony]

Hello!

Im in Broward County, Fort Lauderdale area and recently I have been offered numerous deals that on paper used to be no brainers because you really find prices like that anymore per unit. See if you guys can help me understand what I am calculating. Its a 9 plex offered for sale for 1.7 , I can acquire the property for 1.45. Mix of Three 1/2s, three studios, three efficiencies. The pro forma rent after everything is renovated top notch is approx 15,000-15,500, expenses are about 2500/month. Renovations should be around 150,000 Cosmetics only. When I calculate the the DSCR Route with 25% down on 8% interest, my monthly payment would be around 10k/month until I get the Reno done, and after I should cashflow 2500/month after dishing out of my pocket in total 632,000 for the whole year (taking into an account it should take me a year to stabilize.

If I go Hard Money route, It will be 11K monthly interest only + 2500 expenses + 15% down payment and they pay the Reno. Out of pocket - 217,500+ holding cost - 162,000 and will cashflow maybe $1500 but less money out of pocket. Now in my market the going cap rate should be 5.5% but I see that many multi families are not selling because of the hight interest rates and im scared that I will only be able to sell at a 7-8% cap rate. So I don't know if should pull the plunge, because doesn't matter what routes I take im not making too much. am I missing something?