Looking for analysis or advice from experienced turn key investor

[Daniel Adelman]

Hi BP Community!

I recently came across an interesting investment opportunity in Dayton Ohio- a 48 unit building listed for 1.9 million dollars. I am trying to purchase the property and I'm looking for any feedback from experienced out of state investors. Dayton OH considered hidden gem for turn key out of estate Investors, with a growing job market and steadily rising property values. The investment in an B class neighborhood with steady tenants and economic growth in the area. This would be a turn key on this end- an established property management team and is already in place, it’s recently renovated (no/very minimal repair costs anticipated) and all but 2 or 3 units are already tenanted for the next year.

The financials look very strong to me. This is value add opportunity- rents had previously been under market value (450/month) and since acquiring the property and renovating it, the management team recently raised the rents to match market value in the area (525/month) The property is projected to generate over 25k of monthly income, a cash flow of almost 11k a month, and the annual cash on cash ROIis projected to be nearly 32%

This would be my first large multi-unit apartment deal and I’m looking to either obtain a commercial loan for the property or (ideally) find private/hard money lender that would might also (eventually) serve as a partner/mentor/associate/eventual first to a smart, hardworking, and ambitious young real estate investor. Partnering or any level with an experienced investor with experience would obviously make me a much stronger candidate for a commercial loan but any and all feedback and analysis of the deal would be greatly appreciated

I've attached the BP rental property calculator analysis to this posting ? Does this look like a good investment? And if so, would anyone have any interest in partnering or discussing the deal further? This website and whole BP community is truly amazing- I've learned an incredible amount from thousands of hours spent listening to podcasts, reading posts, and audiobooks over the past few years. Last night I finally took the leap and upgraded to a PRO account and I'm FINALLY ready to make my move :) Anyway analysis or feedback I can get would be greatly appreciated :) 

[Steve K.]

Originally posted by @Caleb Heimsoth:

@Daniel Adelman. I would be very leery of doing this size deal long distance with those low rents. Not a lot of room for error with rents that low. Those are typically best left to the local investors

 I agree with caleb

and if it were such a great deal, a local would have bought it already and it wouldn't be listed on FB