[Calc Review] Help me analyze this deal

[Yasiel Figueroa]

Hi, my BP family! I am starting a syndication and have a few properties that I'm analyzing. This is one of them. I would like to know if these numbers look good enough to put the property under contract. I am using a private money loan. I will only have to pay 1.5% loan origination fee and 4% interest. 

Thank you in advance for the help!

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*This link comes directly from our calculators, based on information input by the member who posted.

[Taylor L.]

How many units?

You'll need to factor in legal expenses to do a syndication.

2% Property Management fee is exceptionally cheap compared to the smaller properties I've looked at

The loan balance doesn't go down over time, is that an error with the model or a particular feature of the private money you have access to? 

In some markets, 3% annual rent growth is not realistic. I can't speak to this market in particular, but it's an assumption that needs to be substantiated.

It would be helpful to know what your plan is as a high level overview. i.e. "This is a C-class 30 unit property of all 2 bed/1 baths. Rents are under market by $X each in the same area of the market and class. We plan on raising rents to $Y below market over 18 months by such-and-such CapEx plan."

That example isn't based on your numbers, but having a high level overview story will help you pitch it to investors. To comment on your numbers we need a better understanding of what your plan is as well.