Posted by Dave on August 12, 2003 at 21:55:01:
First, let me tell you about my thinking. I have a cash flow problem…mainly I don’t have any I am breaking into real estate rather quickly and have adopted the following idealology. To maximize cash flow while minimizing my time. I am acquiring apartment complexes. In order to get the most profit they need to be free and clear. To do this I rehab and rent , pulling out cash against the ARV.
My Question is this … A 20unit apt has crossed my path to get the seller is asking 695k or 34.75k per unit.There are currently 9 vacancies (easily solved). Total potential yearly income is $122,346 ( includes 5% vacancy rate) Total expenses are 45,613. It will yield 37% yearly once clear.
The way I see it there are 4 strong options here 1) hard money 2) a partner (whoever gives the financing will be that person) 3) try to get the seller carry some 4) create a note. I want some input from others if you all don’t mind.