How To Pay $0 For A 16 Unit Apartment (BRRRR Strategy)

How To Pay $0 For A 16 Unit Apartment (BRRRR Strategy)

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Join Tony Stephan in this video as he breaks down a full case study on the 16 unit apartment that he recently performed a 100% cash out refinance on, which now produces an infinite ROI.

Tony will show you how he found the 16 unit apartment building off market. How he negotiated the deal. How we financed the deal and what terms on financing he received. Some of the major challenges and mistakes will also be discussed. Tony will show you the rent rolls, tax returns, NOI, and business plan on this behind the scenes look of a successful 16 unit apartment case study.

This is what's called BRRRR strategy in real estate investing. The BRRRR strategy is a popular real estate investing method that stands for Buy, Rehab, Rent, Refinance, and Repeat. It's a systematic approach designed to maximize returns and build wealth by leveraging both property value increases and financing. Here’s a detailed breakdown of each component of the BRRRR strategy:

Buy - Acquire a property at a price that allows for significant value appreciation after renovations.

Rehab - Improve the property to increase its value and make it suitable for renting. Focus on essential repairs and upgrades that will significantly enhance the property’s appeal and functionality. Common improvements include updating kitchens and bathrooms, fixing structural issues, and improving curb appeal.

Rent - Stabilize the property with tenants to generate rental income and demonstrate its income-generating potential.

Refinance - Refinance the property to pull out equity that can be used for future investments. After completing the rehab and stabilizing the property with tenants, get the property appraised. The goal is to have the property appraise for a higher value due to the improvements made. Apply for a new mortgage based on the property’s increased value. Ideally, this new loan will cover the original purchase price plus renovation costs, allowing you to recoup most or all of your initial investment.

Repeat - Use the equity pulled out through refinancing to fund additional property purchases and repeat the process. Apply the cash from the refinance towards buying another property. Ideally, use the same BRRRR strategy to build a portfolio of rental properties.

00:00 - Intro 16 Unit Apartment Case Study
00:51 - Step 1 finding off market apartment buildings
02:32 - Mistakes I made
04:02 - Step 2 The Debt
05:25 - Step 3 The Plan
05:54 - NOI Before and After
06:45 - Multifamily financing
08:44 - Rent Roll review
09:47 - Completed renovation breakdown
10:18 - Step 4 The Exit
11:15 - BRRRR real estate strategy
11:31 - Tax Return review
12:56 - Appraisal
13:59 - Outro

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[jaylaarmani]

Best multifamily channel on YouTube. Love that you say the good bad and the ugly along w the numbers.

[dmitryg]

Enjoyed the video, great job. Wishing you guys all the best 👍

[JosephBrown-rodf]

Thanks for your transparency. Way to way!

[luisalphahernandezomega]

*AND IT ALL STARTED WITH A TINY HOME TUFF SHED FROM HOME DEPOT.*

[GinoMontesinosVideos]

Amazing information. Thanks for sharing. 👌

[Gabe_Ortega]

Could we talk a little bit about actual cash flow? After your refinance what cash flow do you shoot for per door on a multifamily?

[kptradinggroup]

Another great video, I have been learning a lot and appreciate it when you go into the numbers, reality and setbacks. I work with the super everyday at my fathers 90 unit turning over apartments when tenants move out and raise rent, I am currently 25 and learn a lot from the channel. Thank you Tony.

[ogaming]

Another excellent video. Thank you for the breakdown, no one else is doing this.

[joanthanreyes]

Bro it sounds like a bad deal 280k down to make 300k thats low margin with out anything else out of pocket.

[lifeofyanique]

I look forward to your videos ... Great content & info. I am a Real Estate Investor my Niche is Tax Deed Properties my biggest issue is raising capital... Its my dream to own Multi family Properties.

[luisfrith]

I am truly interested in real estate!!

[georgelewis]

Here 1 house costs 1 million - so this is a joke to the average person

[saifhanna]

Great presentation Tony,
I have a question, does this property cash flow after the refi?

[geraldlofton]

You missed something(otherwise )great video, you need to account for your time..plus you need to Learn how to get PAID to Buy Properties!!!!Let me show you also I payoff all my properties in less than 5yrs

[technician]

This is impossible with rent control and in California.

[AnX]

Why do people keep falling for this real estate scam? trading $700, 000 plus phantom fees and taxes for $200, 000. Ha

[hugorobles]

This is awesome! Video is fire 🔥like you said the proof is the pudding! Real life stuff and very detailed! Talking about the rehab. Looking at the property like you were living there! Fixing it up making it state of the art! Raising rent but worth it! Great owners that care and take care of the property great location! This is inspiring!

[DavidReyes-plso]

🙂 Amazing content. We have to dream first and like you said best time to buy real state was yesterday, second best time is today. that is the reality.

[chrismiller]

Maybe with the immigrants. LMMFAO 🤣 🤣 🤣 🤣