All Forum Posts by: Tony Stephan

Investment Info:

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

Purchase price: $1,008,000
Cash invested: $200,000

12 unit off market value add multifamily real estate investment. Below market rents and outdated units. I received strong financing at a 5% interest rate/ 25 year AM with 6 months interest only so I could quickly turn the rent roll. Previous rents were $550-600/month. Currently renting at $950 + $50 RUBS. Will look to do 100% cash out refinance in 2024.

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

Great location near my other apartment deals and a value add opportunity. I only look to buy in great areas.

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

Called a broker I saw listed a different multifamily on the MLS and I built a relationship. He sold me this 12 unit and another 16 unit as. pocket listing.

How did you finance this deal?

80% LTV 5 year fixed rate at 5% with a 25 year AM from a local CU.

How did you add value to the deal?

Increased rent roll from $500 - $950/month.

What was the outcome?

Will cash out refinance in 2024. Significantly improved the NOI.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My wife is my broker and agent

 Nice man congrats! Let me know if there's ever anything I can do for you or if you're looking to buy in MI we can help you! My wife owns a brokerage.

 Full video here on YouTube brother. Search: Tony Stephan 7 unit. Post any questions you have happy to answer!

Investment Info:

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

Purchase price: $1,410,000
Cash invested: $282,000

16 unit major value add off market multifamily apartment purchased in June 2022 without any investors or outside capital. Major value add play with outdated units. Successfully turned 80% of rent roll from $650 rents to $1150 and drastically improved the NOI. Working to complete the value add deal at this time.

Love Metro-Detroit! My wife and I have 131 units here and great cash flow and equity. We run our own portfolio as well and have zero issues. My largest deal is a 56 plex that's crushing it for us right now. Reach out if you have any questions! @Jeff Neikrie

Investment Info:

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

Purchase price: $1,800,000
Cash invested: $360,000

12 unit multifamily apartment purchased as a package deal with a 8 unit in Hazel Park MI for $1.8M. I'm 100% owner without any investors or partners. Value add multifamily play with below market rents and inefficient management. We were able to improve the NOI on both deals and achieve a new valuation of $2.55M in 2023.

Investment Info:

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

Purchase price: $1,800,000
Cash invested: $360,000

8 unit multifamily apartment purchased as a package deal with a 12 unit in Fenton MI for $1.8M. I'm 100% owner without any investors or partners. Value add multifamily play with below market rents and inefficient management. We were able to improve the NOI on both deals and achieve a new valuation of $2.55M in 2023.

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

Great area and value add potential.

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

Off market through a broker relationship I made on social media.

How did you finance this deal?

80% LTV with local credit union. 4.25% rate for 10 year term / 25 year am.

How did you add value to the deal?

Improved management, reduced expenses, increased NOI.

What was the outcome?

$2.55M valuation in 2023. Cash out refinance in 2024

Lessons learned? Challenges?

Try to by 20 units in one spot vs a 12 and an 8 in two different cities for management efficiencies.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My wife is the broker I use and recommend.

Investment Info:

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

Purchase price: $660,000
Cash invested: $132,000

7 unit apartment purchased on market in October 2021 for $660k. I completed a value add play and did a 100% cash out refinance in 2022 with an appraised value of $1M.

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

A+ location!

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

It was on market via the MLS with a residential agent.

How did you finance this deal?

80% LTV with a local CU. I put down $132k.

How did you add value to the deal?

Increased rent roll from $700/unit to $1150.

What was the outcome?

$1M appraisal and cash out refinance of $250k.

Lessons learned? Challenges?

Imperfect action beats standing still!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No.