In September 2022, we acquired Oak Terrace Apartments, a 31-unit property in the growing town of Berne, Indiana. This off-market opportunity offered the perfect mix: strong existing cash flow, operational upside, and room for strategic renovations. Just 27 months later, a successful cash-out refinance returned 148.5% of investor capital—while we continued to hold the asset and generate strong, long-term cash flow.
This deal wasn’t just about turning units or raising rents. It was a playbook-level execution of our core investing philosophy: optimize operations, renovate wisely, and refinance at the right time to create velocity of capital.
The Refinance & Results
Fast forward 27 months, and the refinance was in full motion. We partnered with Atlas Capital to lock in Freddie Mac (Regions) financing at better terms:
- New Loan: $2,108,000
- Interest-Only Period: 4 Years
- Monthly Payment (IO): $9,573
- Interest Rate: 5.43%
- Amortization: 30 Years
The refinance returned $460,356 to investors, or 148.5% of original capital. Including cash flow during the hold, total returns hit 170%, and all investor capital was returned—creating an infinite cash-on-cash return moving forward.
Real Investor Example:
- Original Investment: $155,000
- Cash Flow Before Refi: $33,425 (9.6% annualized)
- Refinance Return: $230,178
- Capital Remaining in Deal: $0
- Ongoing Cash Flow: $9,300/year → Infinite Return
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