All Forum Posts by: Remone R.

@Dan Gamache

Not easy at all. But will find a way

We are currently under contract on 17 townhomes (being sold together) in Arkansas. Having issues with traditional

Contract price - 495k (29k per unit)

G.I. - 87k ( with 11 units occupied & 6 vacancies, with out of state owner)

Expenses 

Utilities - 8,800

Taxes - 6439

Maintenance - 9,050

Supplies - 7,508

Insurance - 7,408

Pest Control - 3,186

Landscaping - 3,709

NOI - 40,900

Cap rate - 8.2%

Proforma 

G.I. - 158,400 ( Rentometer market rents (13) 3bdrs & (4) 2 bdrs)

Less Vacancy - 5% - 7,920

A.G.I - 150,480

Expenses 

Utilities - 7,503 (2bdr units)

Property Mgmt - 12,672 @8% of total rents per month

Taxes - 6,439

Maintenance - 15,840 @10% of G.I. (with reserves)

Cap Ex - 7,920 5% of G.I.

Supplies - 7,920 @5% of G.I.

Insurance - 7,408

Pest Control - 3,186

Landscaping - 3,709

NOI - 78,243

C.O.C - 29% (after debt service) & (rehab costs)

This property would need rehab of the 6 vacant units and exterior work. Roughly 60k after walk-thru, but 

will know exactly after inspection in a week. Definitely a value-add property

There are comps (Zillow) in the area approx 55k for similar units

Any help appreciated

Any HML or PI that do deals in Arkansas?

Under contract on 17 townhomes sold as a pkg and having trouble going the traditional banking route. A brief synopsis-

Purchase price- 495k( 29k each unit)

GI- 85k

Noi- 25k

There are 6 vacant units as this property is mismanaged by out of state owner

With rehab of 6 units and all units up to market rent

GI- 158k

Noi- 98k (using the same expenses as of now)

So we are purchasing these townhomes at 29k each but there are comps in the area btw 53-63k.

yes @Brent Paul that is where im starting. im sure someone will say YES

yes im figuring that out from the many lenders ive contacted already smh have contacted a few local banks that have offered good terms with an option of a construction loan then perm. Thanks for the encouragement, won't stop til i figure this out.

@Shaun Weekes well they're selling for @495k so an average of 29k per townhome, but there are comps on the same street for about 57k. The units will need some rehab but they still cashflow as is. have at least 20 percent down

I am looking to see how or what options i would have to finance multiple townhomes that are on separate parcels. The seller is selling 17 as a package. Any thoughts?

So we are currently in a 1031 exchange and have potentially found a replacement property(ies). The owner has 17 townhomes he is selling off. We wanted to see what the best option would be to purchase these units. Property does need some rehabbing as it has been poorly managed, but it really cashflows as is even with 5 vacancies! This is a real value add and don't want to miss out. Would this deal be best as a portfolio loan or commercial loan? if we financed them individually I'm assuming after the 10th loan we'd max out and since each unit is around 32k that may be too low to finance individually anyway. Any ideas would be greatly appreciated..

So we are currently in a 1031 exchange and have potentially found a replacement property(ies). The owner has 17 townhomes he is selling off. We wanted to see what the best option would be to purchase these units. Property does need some rehabbing as it has been poorly managed, but it really cashflows as is even with 5 vacancies! This is a real value add and don't want to miss out. Would this deal be best as a portfolio loan or commercial loan? if we financed them individually I'm assuming after the 10th loan we'd max out and since each unit is around 32k that may be too low to finance individually anyway. Any ideas would be greatly appreciated..