Property Description:
48 Units Multi-family Property!
Huge returns! 15%+ Cash on Cash Return!
Seller will finance at an amazing 2.75% and 98 months.
No payments for the first two months!
Two Properties in Stigler OK – Each are 24 units
Units are 1, 2 and 3 bedrooms
Laundry facilities
Currently 46 units are occupied – 96%
402 NW Panther Ln, Stigler, OK 74462
601 NW J St, Stigler, OK 74462
Purchase Price: $2,550,000
Terms: Seller Finance
Down Payment: $550,000
Interest rate: 2.75%
Monthly payment: $9,942.13 Principal and interest
Term: 98 months
Balloon Payment: $1,425,311.75
1st payment will be 60 days after closing
Built in 1982 and 1972
Over 14,500 Sqft and 13,800 Sqft
Building Class - C
My partner did a site vist and said that he really liked the area and the buildings were in great shape!
Cost per unit $53,125
Value Add: pass the utilities to the tenants and create more cash flow. The rents are on the low side and can be raised.
The properties are located within half a mile from each other.
Seller has spent a lot of money on renovations over the last few years
Actual P&L (Based on 2024 through July.)
Average Income YTD: ($29,411/mo)
Effective gross rents: $352,934 (Brought in $374,347 in 2023)
Expenses:
Taxes $11,568 (estimated 2024 taxes based on Tax Assessor)
Insurance: $30,062 for all 48 units (actual quote and can save about $1,200 by paying it in full at closing. This is about half of what initially was quoted.)
Utilities $33,320 (Gas, electric and water. One building bills all utilities to tenants. The other can implement RUBS to reduce this about $25K per year.)
Maintenance: $6,300 (this line item included a number of things including capex, reserves, 2 paid contract laborers, and some maintenance like landscaping and pest control which also had a separate line item. Maintenance will only include landscaping, pest control and some miscellaneous items and other expenses will be added into their own line items.
This is 7 months of landscaping at $500 and 7 months of Pest Control at $400.)
Repairs: $17,646 (5%) (This is high)
Management (8%) - $28,234 (Self managed. This is what you would be paying.)
Reserves/Capex (3%) - $10,587 (Supplies - $14,000 (this is super high)
Miscellaneous (Turnover, legal, etc.) - $12,000 (put this in as a buffer)
Total Expenses: $153,130 (43%)
NOI: $199,804
Monthly net cash flow after debt service - $6,708
Yearly Net Cash Flow - $80,500
COC Return – 15%
Value Add - $2K+ monthly in year 1 implementing RUBS and increasing rents
We will provide a short period of time for due diligence where your earnest money is refundable for serious buyers. To reserve the property you will need $25,000 refundable earnest money.
After the site visit the earnest money will go hard and be fully non-refundable.