It’s an 84 unit building in a great area of Columbus that is 85% occupied, and will get to 100% when we purchase it. Rental income should be a 14% cap rate, so there is plenty of profit coming in to pay our liabilities and this position. We need a $900k position to close and will pay 9.5% I/O for 24 to 36 months depending on what everyone wants to do. I will top that off with 4 points paid upfront in the first 4 months. ($36,000) Meaning I’ll pay an extra $9,000/month for the first four months in addition to the $7,125/month of I/O received for the 9.5% rate.
Total profit in 24 months is $207,000 Or $292,500 for 36 months - this will also lead to more opportunities and other positions in the future.
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