I am thinking of investing in a syndication that is buying a 157 unit apartment project located at 3117 S 192nd St. in SeaTac, WA 98188.It appears the property last sold in 2015 for $1.8Mn….the syndicators now plan to buy this property at a price that is about 60% higher and around 10.8X trailing 12 months gross rental income or 9.7X gross income projected over the next 12 months.They plan to renovate the units and increase gross rental income by 11-13% in each of the next two years and then level off at 3% annual rental growth thereafter.

I am thinking of investing in a syndication that is buying a 157 unit apartment project located at 3117 S 192nd St. in SeaTac, WA 98188.It appears the property last sold in 2015 for $1.8Mn….the syndicators now plan to buy this property at a price that is about 60% higher and around 10.8X trailing 12 months gross rental income or 9.7X gross income projected over the next 12 months.They plan to renovate the units and increase gross rental income by 11-13% in each of the next two years and then level off at 3% annual rental growth thereafter.

I assume it's better to think that this could have always been worse such as a larger multi-family deal and such. 

With a building you couls have more sizes to accommodate larger customer base.

Here are my numbers:$82k PP and CC$60k renovation (fully permitted)$3k holding and misc$145k all in$200k ARVRents range from $650-850 (of course I think for a brand new unit we'd command the highest rent)$55 gross profitSo if I went traditional I'd spend another 13k in closing and agent fees.When our investors fund the entire deal we share 50% of profits so why not find the end buy and hold partner in the beginning and give them that 50% discount on the property.

For capital gains taxes, how can I charge my personal time to the cost for renovation?

Hi all,I discovered real estate investing around a year ago, as part of a larger journey learning about financial independence.

I put 25% down of these properties and also borrowed 80% of the renovated costs.  

Karl,Most agents, over time, tend to specialize to one degree or another so just asking for an agent could get you someone who only does larger (>100K sq ft) industrial leasing (unlikely on BP but you get the point).There are any number of Cleveland area agents who hang around BP but each has their niche.

Plan would be to refinance after a period, but the analysis is based on $80k renovation and 9% loan.