26 Unit Apartment Opportunity

[Larry H.]

I found a 26 unit apartment complex that I'd really like to get.  It's in a neighborhood where we have two 4 plexes and cash flows well.  Problem is, I don't have the down payment (a little over $100k).  I have asked the seller to finance the down payment, but they are selling to use the money for another business venture, so I think they need their cash right away.

Even with 100% financed, (estimating 6.5% commercial loan plus 8% loan for the down payment, 24% budgeted for turnover, cap ex, and maintenance) the cap rate is 10.26% and debt coverage ratio is 1.27 and cash flows over $1000 per month.  AND these numbers are based on 80% occupancy, which is highly unlikely in this neighborhood.

Anyone have any experience with private lenders/investors who may be able to guide me in the right direction in getting this deal locked up?