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Updated 3 months ago on .

User Stats

3
Posts
1
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Sunny K.
  • Real Estate Broker
  • Detroit, MI
1
Votes |
3
Posts

Genesee County, Michigan - Large SFR Portfolio Acquisition & Management

Sunny K.
  • Real Estate Broker
  • Detroit, MI
Posted

Investment Info:

Large multi-family (5+ units) note investment investment in Flint.

Purchase price: $450,000
Cash invested: $250,000

Client Portfolio Spotlight – SK Capital
Executed by Ikon Property Group (IPG)

Ikon Property Group successfully executed a comprehensive investment strategy on behalf of SK Capital, building a portfolio of 34 single-family rental properties in Genesee County, Michigan.

Our vertically integrated approach included:

- Strategic Acquisitions: Properties were sourced through direct-to-seller deals, the Genesee County Land Bank, and the Michigan Tax Auction, with acquisition prices ranging from $5,000 to $30,000 per property.

- In-House Renovations: Our construction team handled all renovations internally, transforming distressed assets into turnkey rentals while maintaining strict budget and quality control.

- Leasing & Property Management: Each unit was leased to thoroughly screened long-term tenants using full credit, income, and rental history checks. Ongoing management is provided by our brokerage, Ikon Property Group, ensuring tenant satisfaction and operational efficiency.

- Capital Optimization: After stabilization, we facilitated cash-out refinances via our affiliated lending arm, allowing investors to recover significant upfront capital while maintaining positive monthly cash flow.

Portfolio Highlights:

34 single-family rental properties in Genesee County.

Properties currently valued between $60K and $150K each.

Rented at $900–$1,100/month, averaging $1,000+ per unit.

Typical all-in cost per unit (purchase + rehab): $20K–$50K.

Gross rental yields over 30% annually before refinances.

Strong equity growth and significant monthly cash flow.

Fully passive for the investor — all services provided in-house by IPG.

This project highlights our ability to identify overlooked markets, create value through hands-on execution, and deliver high-yield, fully managed rental portfolios for investor clients.

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

Our clients were attracted to these deals because of the high cash flow, low entry cost, and strong value-add potential. With purchase prices as low as $5K–$30K, we were able to stretch their capital, execute efficient in-house renovations, and deliver turnkey rentals with 30%+ gross yields. The strategy offered an ideal mix of cash flow, equity growth, and passive ownership.

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

Many of the deals were sourced through Michigan Tax Auctions, the Genesee County Land Bank, and sheriff sales. Others came from direct outreach to owners with distressed properties needing major renovations. We leveraged our local market knowledge and in-house construction team to negotiate discounts, often on properties that most investors overlooked due to the rehab scope.

How did you finance this deal?

Our client, SK Capital, had significant investor capital raised, which was used for initial acquisitions and renovations. Once the properties were stabilized, we helped them secure large blanket DSCR loans across multiple assets. This allowed them to cash out equity and reinvest into expanding the portfolio while maintaining strong monthly cash flow.

How did you add value to the deal?

We added value through strategic upgrades and tightly managed rehab, keeping construction costs low while significantly improving property condition and appeal. This allowed us to increase rents and tenant quality. Professional property management ensured efficient leasing and long-term tenant retention, driving strong cash flow and overall portfolio performance.

What was the outcome?

We built them a portfolio of 34 single-family rentals with all-in costs of $20K–$50K per unit. After renovations and lease-up, properties now appraise between $60K and $150K and rent for an average of $1,000+/month. This resulted in 30%+ gross rental yields, strong monthly cash flow, and 2–3X equity growth. Our clients also completed cash-out refinances to recover capital while keeping ownership, making the portfolio fully passive and cash-flowing.

Lessons learned? Challenges?

One key lesson was that in Genesee County, neighborhood quality can vary street by street—and those dynamics shift over time. This makes it a higher-risk market if you're not actively involved in buying, selling, or managing properties locally.

We also ran into issues with cash-out refinances on single properties, where appraisals came in too low. Many appraisers lacked hyperlocal knowledge and didn't understand the true value of renovated rentals in certain pockets. In those cases, we had to p

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

We have developed many strategic partnerships with Realtors, lenders, and other professionals throughout Genesee County and across Michigan. However, for this particular initiative, our organization spearheaded the entire process—from acquisition and rehab to financing and management—on behalf of our client.