20 unit analysis - $12,495/unit

[Account Closed]

Built in 2002, south Texas, currently empty and boarded up. Needs $50K rehab + individual HVAC units (or window units), individually metered electric, individual hot water heaters. Seller will consider 100% financing with deferred payments for start-up. Proforma GOI $86K, expenses $41K = NOI $45K. First of all, is this the great deal I think it is? Secondly, would you take seller financing for mortgage and hard money to cover the rehab and HVACs? Thanks.

[Scott R.]

I think the deal looks alright, but you have to take into account why has a 8 year old building already been vacant and boarded up? did something happen to the property? stuff like murder can greatly impact an apartment complex. Once heard of a story where someone hung there spouse, and did it in the apartment complex laundry room.. unsure if the story was completely true or not, but makes sense. was said almost the whole complex freaked out and moved, no one would move in and ended up demoing the building.
Can we get alittle more specific then south texas? town atleast? there are a ton of tiny comunities in that area... which prob arent the best locations for complex's but I believe its one of the best areas to invest in.
Was it an apartment complex before? was it all set up on like a boiler and central hvac ? why does it not have any of those items?
owner financing with deferred payments is an awesome way to finance, but it will take some time to fill the complex..., and thats after all the remodel
Rents seem low, are they efficencys? 1 bedrooms?

Hard money lenders generally want to have the first lein position, therefor would probablly not loan money just for the remodel, im sure theres some that would, but this is not common.
Also, states your from New Hampshire, are you ready for a long distance flip (x20) then long distance landlording!?
-Scott