125 unit Apartment Cash Flow Analysis

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Apartments Cash Flow Analysis
5 year look into returns for a financed complex at 5% interest rate, amortized over 25 years, 75% LTV assuming 90% occupancy and 45% blanket expenses.

Apartment Buildings/ Multi Family Investments............

Apartment complexes are a great way to watch your money grow! You have to buy them at the right price.  More importantly, the management of the asset and operations is critical to the success of creating those returns without worry. You should vet your management team to your satsfaction and review what they do: reporting procedures, repairs, regular maintenance, collections, marketing, property appearance, etc. With a good management team that has the discipline to follow up regularly and take care of issues as they occur is invaluable. 

The current analysis I have here does not show the exit price and IRR, but that will depend on the cap rate you sell at. The sale price would be over $8.3 million if it was sold at a 7.0% cap rate. That would give you somewhere in the 24-25% IRR. I like to leave the future up to the speculation of clients. We can discuss different scenarios to give you a realistic window.

The end game is just as important as the acquisition and operations of the complex. You should look at the full life cycle of each of your investments with your goal in mind. You should be turning your initial investment over into a larger income producing asset or more cash than you came to the table wth in the beginning. 

I want to note that 2 links on the main page will take you to 2 such qualifed teams if you are considering a passive investment or management. Call me to discuss.