30 plex deal analysis

[Matthew Yrungaray]

Hello all,

I am working on a 30 unit multi family property in SLC, UT. Each unit is 900 sq ft, 2 bed 1 bath. Units are updated and about 40 years old. Vacancy has been almost 0 in the last 10 years. The rents are perhaps $25 under market. There is no deferred maintaince, PM has done a great job keeping up the property. Here are some other details:

Asking price: $2.2M

Gross income: $234,880

Expenses: $76,760

NOI: $168,248

LTV 80%

debt service: $139,400 (20 amort. @ 5%)

Cash flow: $28,865

Cap rate: 7.6%

(It seems that most investors are looking at higher cap rates but this seems to be better than most in this area and for this quality of property)

I have a million questions:

How do I protect myself and investors from the short fixed rate period?

Should I offer as a private mortgage opportunity?

how structure the ownership of the deal when most of the cash is coming from other investors? I want the equity and I am willing to forgo the current income.

I have other questions but I think that they may be answered along the way.

Thanks to anyone that has some insight

Matt from the Salt City.