Financing options for 14-unit in Marietta, GA

[Haley Varner]

Hi - I'm looking to make an offer on a 14-unit in downtown Marietta, GA. Proforma is as follows. At $575k, returns using the below are 17% Levered IRR (assume 80% LTV, 4.5% 360), 12% cash on cash, 1.33% rent to price ratio.

Aside from traditional lender financing, I'd like to make sure I've explored options to put less money down than 20% and potentially find a better rate than at a local/commercial bank.  Therefore if there is an active hard money lender in the area or suggestions for loans that might fit this deal profile, I'd be delighted to discuss.  

I'd also greatly appreciate any comments on assumptions - anything I've left out or where I might be too aggressive.  Thank you BP community in advance for your assistance! 

Haley 

3 buildings, 14 units 

Units	#	Rent
3 BR
2 BR	14	$550
1 BR
Total	14	$7,700
Gross Purchase Price	$575,000
Total Budgeted Programmatic Capex	$30,000
Closing Fees	5.0%
Closing Cost	$28,750
Net Purchase Price	$575,000
Resale Value	$650,000
Exit Cap Rate	9.0%
Hold Period (Years)	5

Revenue	Monthly	Annual
Gross Annual Rental Income	$7,700	$92,400
Other Income (Parking, Pets, etc.)	$0.00	$0
General Vacancy Loss	10.0%	$9,240
Expenses	Monthly	Annual
Fixed
Electricity	$0.00	$0
Water	$66.67	$800
Sewer	$0.00	$0
Garbage	$15.50	$186
HOA	$0.00	$0
Insurance	$415.00	$4,980
Taxes	$448.83	$5,386
Other	$20.78	$249
Variable
Repairs and Maintenance	3.0%	$2,772
Property Management Fees	20.0%	$18,480
Other
Capital Expenditures (Reserves % Gross Income)	3.0%	$2,772
Market Assumptions
Market Rent Growth (per annum)	2.0%
Expense Inflation	2.0%