Purchasing needed for a 6-unit cash flowing complex

[Sherri D.]

Hello!

I have a signed Buy/Sell agreement to purchase a 6-unit apartment complex for $119,900 in Kalamazoo, MI. The cap rate for this area is 10%. The value of this building based on the cap rate is $225,700.

I am buying this building at a cap rate of 18.8% and there is approx. $18,500 of rehab that needs to be done. The property is 100% occupied and already cash flows. I have a detailed business plan complete with profit & loss and cash flow statements available upon request. I also have a repeat committed investor that invested $10,000 for due diligence for things such as inspections, retainers, etc. These terms are negotiable, but I am looking for a 2 year 70% LTV loan for $157,990 at 6.5% APR, 30 year amortization with a balloon payment after 2 years with no prepayment penalty for the purchase, but also to perform the structural rehab that needs to be done.

My goal is to refinance with my credit union with a commercial loan in 2 years. If you have any questions or concerns, please feel free to contact me.

Thank you,

Sherri Duncanson

President & CEO

Evans Investment Company, LLC