Summary of the Deal:
1. Great location, rapidly growing area of Greensboro, 36 units.
2. Below market rents - approximately $100 to $125 below market, and the ability to raise will be enhanced after some upfit is done.
3. Budget includes $240,000 at closing towards upfit that will include kitchen and bath "facelifts" at turnover, new roofs, parking lot re-striping, and exterior and common area painting.
4. The current owner is a developer who has not paid sufficient attention to the property. We will use a great third party manager who is experienced with properties of this size and location.
5. Lock in a very low interest rate for 10-years, with one year of interest-only.
7. Purchase cap-rate approximately 10.00% , which makes the cash-on-cash returns (10-11%) - very attractive for multi-family.
This is a solid B-class property, located in Greensboro, between New Irving Park and Lake Jeanette. Greensboro was recently ranked as the 9th fastest growing city in the US since the 2008 recession, and rental demand is very strong.