Need input from equity investors deal in kansas city area.

[Steve Ipock]

Disclaimer this is not an offer that I am offering on here. I am just looking for input on how investors would feel about this deal if it was offered.

I have the opportunity to buy a 6 unit building but dont have the cash to purchase and rehab the building myself.

My role: I would do all the work and manage the property in this deal and distribute the profits to investors.

The deal: I would offer this deal up 30k for 10% ownership. I would be offering a total of 50% of the deal, investor could buy 10-50% if they wanted. Im estimating rent at 500/unit/month. Estimating taxes and insurance at 3k/year, maintenance hold of 3k per year. Rahbbed it shouldnt take that and on sale that maintenance hold balance would be divided by % of ownership. That would leave a cash flow of 30k/year. Return would be 3k/year/30k invested.

The plan would be to operate the property for 5 years after rehab was finished and put it up for sale at an estimated 300k, now that doesnt mean that an offer doesnt come in before the 5 years after rehab was finished for the 300k and we sell it sooner. This would be a totally rehabbed apartment building. If the building sold for 300k investor would receive their 30k back upon sale of the property per 10% invested. If the property was sold before 1 year after rehab was finished they would be garaunteed 30k on the sale & a minimum ROI of 3k.

Again I am just estimating the cost, rent, taxes, insurance & sale price at this point.

Now to the question at hand. Would this be a deal that would be of interest?

Questions, comments, concerns?

Thanks for your input in advance.