All Forum Posts by: Mike Vann

@Brady Lamprecht, actually east of Tulsa in Pryor, OK, home of Google OK

https://www.reinvestorgroup.com/

The best meetup I know of in Springfield is the 3rd Thursday of the month at the Hilton Garden Inn  

Thanks @Jai Reddy! Where are you investing now?

@Account Closed, exactly!  They are out west and wanted to focus more in their own back yard so we were able to get a great deal. 

@Account Closed, the previous owner put over $1.6M in CapEx so most everything is done. We only have 5 original interiors left to rehab and then some exterior touch ups, add some amenities and stripe/seal the parking lot, re-branding and landscaping. We're looking at about $2500/door and we can get $75-$125 premiums and still be below the comps.

@Yonah Weiss, our underwriting, although conservative, is based on a 5 yr hold period but we feel we can hit our return metrics in 2-3 and then either sell or cash out refi, return capital to investors, and hold for a longer term.  We are planning to do our cost seg in April to take advantage of the bonus depreciation. 

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $1,475,000
Cash invested: $400,000

We completed a 1031 exchange to purchase the property and completed a heavy lift, $8k/door, rehab and tenant reposition on this property.

What made you interested in investing in this type of deal?

I wanted to scale my personal portfolio. This deal provided a high ROI potential and good cashflow and I was able to use tax free 1031 funds to purchase.

How did you find this deal and how did you negotiate it?

I found this deal through a REI Facebook group

How did you finance this deal?

Commercial Loan from my community bank.

How did you add value to the deal?

We completely remodeled the unit interiors w/ new appliances, counters, plumbing/lighting fixtures, doors w/ hardware, and vinyl plank flooring as well as installing new vinyl windows in every unit. We improved the amenities by extending the pool deck, adding a large pergola, bought new pool furniture, and added a grilling/seating area. We also remodeled the office and laundry areas. We improved operational efficiencies by adding 3rd party management and repositioned the tenant base.

What was the outcome?

This property is stabilized and producing great cash flow and providing double digit returns.

Lessons learned? Challenges?

This was my first larger MF deal and I learned a lot about property management and large scale rehabs through the transition/reposition of the asset and tenant base.

Investment Info:

Large multi-family (5+ units) commercial investment investment in Oklahoma.

Purchase price: $4,225,000
Cash invested: $1,450,000

100 Unit C-Class Apartment community

What made you interested in investing in this type of deal?

High Cash Flow

How did you find this deal and how did you negotiate it?

Broker relationship

How did you finance this deal?

Freddie Mac SBL

How did you add value to the deal?

The plan is to rehab interiors, exteriors, and add amenities as well as implement professional 3rd party management.

Welcome to BP @Denterrius Leverson!  Arkansas is a great place to invest and so is your future new home state of Texas.  I MF properties in both states.  There are a ton of resources here on BP and within the specific topic forums that interest you.  Good luck in your investing journey and please reach out if I can help.