Six-Unit Apartment in Cleveland, OH area

[Joe Coyne]

Hey All,

I'm working on a deal right now in the Cleveland area that I'm pretty excited about.  It's 6, 1 bedroom units commanding an average rent of $525/unit (below market).  It's in a great neighborhood and is being listed at a price below market.  Fairly low maintenance and many updates have already been made.  If the payment can be kept under $950, we are looking at close to $750/month cash flow. 

Being new to the commercial property space, I wasn't fully aware of the types of products out there.  As of now, the best one I've gotten (I think) is a 25 year loan with rates adjusted every 5 years, starting with a 4.5% rate.  Another one I've gotten is a 5 year adjuster, 10 year balloon (can be modified at that point) that's amortized over 20 starting with a 5% rate.  I'm assuming all will command a 20% down payment, which is doable. 

I'm just curious what people think about this.  If they know of any lenders that can beat these products. And if a $750/month cash flow for 6 units is considered a good deal in your eyes.  If I can find the right loan product, I may put an offer in this week. 

Cheers,

Joe