Why We Like This Deal

• Acquiring at a significant discount

• Incredible going in 6.1 cap

• 1988 & 1992 vintage asset with major renovation upside

• Booming N. Atlanta submarket has doubled in population

• 100% classic interiors – ability to raise rents by $200

• Significant bonus depreciation available

Potential Investor Returns

• 5% Cash on Cash

• 15% IRR

• Projected 1.9x equity multiplier ($100k invested = $190k returned)

How We Are Protecting the Downside Risk

Phenomenal Loan Product

• We are buying this deal with fixed rate financing at a low 5.61% interest rate at only 65% leverage.

• This loan also has full term interest only! 

  • This means the payments will be easier to make even in the event of challenges that may arise. 
    
    

Conservative Underwriting

• Rent increases of only $100 more than the highest rent they are already getting. 
• High economic vacancy modeled in years one and two of 15%. This is double what they are getting right now. 
• $180,000 in extra capex reserves. 
• Only 2 renovated units needed per month to be on track. 
• Projecting only 1% organic rent growth year 1 (market avg is 4%)