Large Multi unit Portfolio in Texas

[Jackson Carr]

Hey everyone,

I am analyzing a few larger commercial deals and want to get some input on a deal of this magnitude.  This is truly a mix of B,C,and D units.  Currently, I am leaving expenses at 50% because I am just doing a quick analysis of the property. Given that it is still returning 6 figures and currently has a 95% vacancy I think that the deal looks worth digging deeper into. I have about half of that down payment and i am pretty sure I could get someone to go in with me on the other half.

Thanks,

Jack

Location	Lubbock, TX
Property:	Portfolio of mix 67 Units
Cost:	3,350,000
Acquisition cost:	1%
Total:	3383500
Down:	845875
Loan	2537625
Debt:	149212.35
Current Monthy rent	42520
Annual Rent	510240
Expense @50%	255120
NOI @50%	255120
Cash After Debt @50%	105907.65

[Edmund Chiang]

Loan amount: $2,537,625

Interest: 5%

Term: 20 years fixed

Yearly Debt Service: $200,966

Cash after Debt Service: $54,154

Cash on Cash (ROI): 6%

This cash on cash (ROI) seems low for the amount of risk taken. Please make sure the figures are correct before pulling the trigger.