Buying A Large Apt Complex

18 units in Montrose, Houston, Tx.

You want finance, development, headaches, or what other kind of guidance.

I'm guessing they are pretty old for being $60,000 each?

Are you going to have someone on site? Is there an office? If not, I'd probably make it 29 units with an office.

I don't have any experience with it, but I'd make sure the money is right unless this is a retirement gig for you.

ETA: The issue with apt complexes is a lot of them are built in up and coming areas that then come and go. No one wants to live there anymore in the units built in the 90s and early 2000s. So you are chasing the bottom and getting crappy tenants. Now if you can buy one built many years ago in a good location that is likely to improve, absolutely.

I'd also consider the long term land play. $1.8 for a chunk of land that fits 30 single floor units could be worth a lot one day or even now or very soon.

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I finance large apartment complex’s and they are looked at differently but terms are very attractive.

I am a commercial banker and work for a larger bank that loves these deals. They work pretty well.

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What terms are typical for someone with a small portfolio with prior experience? For example, what would the terms be like on this deal? 80% LTV? Interest only at first? How long would the note be?

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What terms are typical for someone with a small portfolio with prior experience? For example, what would the terms be like on this deal? 80% LTV? Interest only at first? How long would the note be?

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Nugget - we require 25% down and typically a 10 year term with a 20 or 25 year amortization. Prior experience is nice but not necessarily required.

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Aren’t they typically 10 year 75%LTV?

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Apparently. But I could go to a local bank and get 85 on a 10/20 for something like what the OP suggested. Any bigger than that and I’m sure they would tell me to kick rocks.

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I wanted to see what are some of the bigger issues to have in order.

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I don’t know what sort of mix you’re looking at (1, 2 and/or 3 bedroom), but your appraisal contingency will help you there.

Also, taking the age of the building(s) into account, take a close look at the maintenance records and any capital improvements that have been made.

Depending on how the numbers play out, this could be THE deal that takes you to a different place. Good luck.

30 units isnt a large complex by any means. But either way as real estate investor I would not recommend taking on something of that size until you have some extensive experience and connections under your belt... i'd say atleast experience owning/managing a quadplex and some rehabs. I also think this would be better asked on biggerpockets