Multifamily Financing plan

Need some advice on a multifamily financing plan I have to see if it is going in the right direction. I am planning on going under contract soon.

Ok here is the basics.

Apartment complex to buy

me and one other partner are purchasing it.

decent 8 cap…with .01 % vacancy in 15 years…a class B building

Equity and cash flow split is as follows:
Me 55% (extra 5% to manage the property)
Partner 45%

I am going to refi my home which is fully paid for and pull out 65K for the downpayment.

My partner is paying the other 65K in cash

total downpayment =130K, owner carry back 10%

Now…i will use my monthly cash flow split to pay back the loan on my home and still make a few bucks

My partner will take her 45% cash flow per month

Question 1.

At 5 years my proforma says we will have 522K in equity
The owner is carrying 10% 30 year fixed at 5.5 balloon at 5 years…
So I just refi at 5 years and pay that off correct?

Question 2.

I will plan on buying my partner out at some point probably 5 years as well. At that point do we refi to pay off balloon and I also refi to pay off my partner and cash out her equity share? Does this sound resonable. I then assume full equity share and a new loan?

Question 3.

Is it crazy to mortgage my free and clear home to come up with a downpayment???

Thanks you anyone who has advice on this deal! I owe you one…

Run the numbers with a 20 Year mortgage fixed for 5 years at 9%. Look at the cash flow and then decide if it is crazy to cash out your home.

Why would that help…can you explain? Do I use the 20yr and figure in the owner’s carryback or just one loan and see if the numbers work? Thanks…

Use the 20 Year 9% just on the lender financed amount. Factor in the owner financing and the other costs of ownership. What’s the cash flow after computing all numbers?

So I ran that scenario on 80 LTV of the purchase price
and no way does it make sense…can you tell me why you chose these numbers?

From what I see in my original numbers as stated above I can easily service both my first and second mortgage (owner’s financing) and also pay the debt service on my personal Home Equity Loan and still have a cash flow.

I don’t understand where the 20yr at 9% comes into play…I have an I dea but still it doens’t make sense

Am I just missing something here?

Yea that won’t service the debt. Negative cash flow…

Are you still considering this Multi unit property?

If so, or even if you have another in mind, I think I can offer you some choices that might make the deal work.

However a few more details are needed to determine whether or not I could help.