ADDRESS: Will be released upon execution of a finders fee agreement. [click the "Read More" the Link to download the finders fee agreement]
PROPERTY TYPE: Multi-Unit | Brick/Frame
PRICE: $975,000
ARV: 1,700,000 [see value indicators under read more]
REPAIRS:  Minor Cosmetic 
UNITS: 73 [8 studios/12 One Bedroom/53 Two Bedrooms]
SQ FT: 65,000
CAP RATE: 13% 
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Disclaimer: all information comes from public & private resources. you must do your own due diligence to determine accurate info. Click the "read more" link to see more information about the property.

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SUMMARY OF SALIENT FACTS

Price: $975,000

Description:  73 unit apartment building:  8 studios, 12 one bedroom, 53 two bedrooms. The total building size is 65,000 square feet on 4.2 acres. The buildings are four-sided brick.

Potential income: $38,150 per month / $457,800 annual / Net after expenses and vac. $228,900 per year

Value: Current APV with Fulton County Tax Assessor $1,650,000. The property last sold for $1,585,000 in 2006.  The after repair / rented up value is conservatively estimated at $1,800,000 using the most conservative value indicators (See below) leaving equity of over $300,000

Repairs:  The property does not need major renovation, but could benefit from exterior paint, decorative fencing and landscaping

PROPERTY LOCATION: The property is in close proximity to schools, shopping and transportation. The immediate neighborhood is stable and nice, consisting of single family homes and small income producing properties.  The property is within seven minutes of Interstate 75, and a short walk to bus lines.

VALUE INDICATORS: From an appraisal perspective, the below listed indicators are considered very conservative.

GROSS RENT MULTIPLIER: $457,800 potential gross income X 4 = $1,800,000 (Rounded)

CAP RATE:                              $228,900 net income / 13% cap rate = $1,750,000 (Rounded)

PER UNIT:                                  73 UNITS x 25,000 per unit=                $1,825,000

Investment strategy: Buy low, light renovation, rent below market, refinance after 12 months for a net cash out of $250,000 tax free, and positive cash flow of approximately $40,000 per month.

Numerical representation of cash out refinance strategy

   $1,800,000 (Appraised value after renovation and rent stabilization)

   $1,100,000 (65% loan to value, available at all major banks for stabilized building).

    -$850,000 (Acquisition cost of $800,000 plus $50,000 renovation costs)

     $250,000 (Net cash out after initial investment and renovation recapture)

Cash flow projection:

        $38,150 Gross monthly income

      -$15,260 (40 percent expenses. Includes taxes, insurance, management, maintenance, reserves…)

        -$2,290 (Vacancy calculated at 10% of effective gross income)

       $20,600 (Net monthly income before debt service)

         $6,500 (7.5% fully amortized over fifteen years)

       $14,000 (Monthly positive cash)