100% cashout - Bought for $1.725M -1> Appraisal: $3.4M in 1.5 yr

[Yosef Lee]

100% CASH-OUT REFI FESTIVITY

👇Purchase price: $1.725M -->> Lender appraisal came to be $3.4M in 1.5 years!!!!!! 🤯🚀👆

Friends! I’m sharing a great news! Last month (4/28/22) we closed cash-out refinance for our 44 Unit multifamily property! 🤩🤩👇👇

🎇About the property: 44 Unit C class property, 1960s, all 2bd/1bth, closed in December 2020.

🎇Purchase Price: $1.725M / Capital invested by partners: $520K / Loan: Community bank, recourse, 4%

🎇Average Rent at closing: $500/month -->> NEW RENT at $795!!!

🎇This was my very first property - I had written about this deal on BiggerPockets after closing. In case you are interested in learning what steps I took to get my first deal closed. (https://www.biggerpockets.com/forums/223-biggerpockets-success-stories/topics/921192-my-first-ever-44-unit-mf-apartment-closed-in-dec-2020?page=1#p5370534) 

Period the property was held prior to Refi: 1 year and 4 months.

🎇Things done: At the time of closing, there were about 50+% MTM tenants. As soon as we took over, we pushed them to renew for a long term lease with higher rent, or else pay MTM premium. We tried to push 3-6 units every 1-2 months and did turns.

🎇MTM tenant % now: Approx 5%, Rent now going on $795! Appreciation was forced and equity was created.

🎇Refi Loan: Freddie Mac agency, Non-recourse, 3.97%!!!! (We locked it in right before the hike!!!)

🎇Lender appraisal came to be $3.4M!!! We got 70% LTV, so after paying for then current loan, little more than 100% Capital was returned to the investors!

🤯🤯100% capital pulled out!!! AND we still Own it, AND it is still cashflowing!!! Now the Return is INFINITE!!! AND WE still have more room to raise the rent!! 2nd round Cashout Refi few years down the road!!! We will never sell this!! OMG!!! 😳🤯 Oh wait…what??? that 100% returned capital to investors is TAX FREEEEEE!!!!! 🤩🤩🤩 I’m rolling this into a next deal, 115 Unit! 🚀🚀🚀
This is the proof of the concepts I learned!! Forced appreciation, Cashout Refi, Infinite Return, Tax free money, generational Wealth, Velocity of money! 🤓🤗😲

I don’t know much about stocks…but boy..this was a great invesetment. Hard Asset REAL Property. 🏢🏬 The Consumer Price Index was up 8.3% in the 12 months ended in April. We have been hedging all that inflation! 😮‍💨😮‍💨😮‍💨

Love this investment vehicle! 😎😎 Let's keep going and building a financial fortress for our kids!!

Yosef