What would a seasoned investor do with this deal….?

[Daniel Brown]

I wanted to get some feedback on what seasoned investors would do given the below mentioned projections offered in a 65-unit syndication:

65 units recently remodeled/upgraded insides built in 1992 – 2000 (Class C)

Tertiary Market 3min from a medium size university (~11,000 students)

New roofs, New siding, New parking lots, Some new HVACs

4% Vacancy Rate due to units finishing remodeling

Listed Cap Rate 8%

Value Add: Rents are 20 – 25% below market

Projected returns:

Exit Strategy no more than 5 years

65/35 Equity Split

8% Preferred Return

17 – 18% Annual Average Return

15 – 16% Internal Rate of Return

10.9% Average Cash on Cash Return

87% Overall Return on Investment