12 Plex Financing - Advice

[Deon White]

Hell everyone! :) Posturing up to  make my first offer, Ill keep it short:

• 12 Plex on MLS for 1.2M

• All 2/1's (915 sqft)

• Current rents average $865 / unit ($52,000 NOI)

• Pro forma rents $1,400 ($100,000 NOI)

• Area Cap Rate = 7.45

• I have 50k to invest + wife's (2.5%) 30k commission = 80k liquid at closing.

Questions:

1. Is my logic correct in thinking the value would go from 600K > 1.345M if NOI increases from $52,000 > $100,000?

2. Would this 1.2M > 1.345M value increase allow me to refi in a 3 - 5 years and cash out the investors?

3. I only have 50k liquid + the 30K commission , how should I approach financing this deal? Rates seem prohibitively high.

4. The listing states "submit offer with pre-qual letter or POF" how might I navigate if I plan on using private money?

5. How would you structure a seller financing offer? (I was thinking 1.35M @ 4% over 30 years with a 10 year balloon)

6. Should I come in above asking? I really don't want to lose this deal.

This would be our first deal, and with rates this high, financing is obviously the bottleneck.

Any advice would be so helpful. Cheers.