Paid 6% cap rate. In-place rents 20% below market. Plan to renovate units, raise rents, and add laundry facilities to boost pro-forma rents and increase value.
I'd like to see the pro-forma showing the exact rent bumps and expense ratios. Assuming a 20% rent increase post-renovation, what's the projectde expense ratio? Is it around 35-40%? Also, how's the loan sized to the 6% cap rate, and what's the debt service coverage ratio? Considering an 80% LTV, the loan should be around $1.4M, but I'd like to confirm the actual numbers.