Case Study: K7 Partners LLC

How We Run Our Own Portfolio — and What We Build for Clients

This is not a client engagement. K7 Partners is our own real estate portfolio — the system below is the same monthly financial reporting and decision framework MIKA FSG builds for clients.

The Situation

K7 Partners LLC holds four single-family rental properties, each in its own LLC. The portfolio mixes market rentals with family-occupied homes run on a cost-control mandate — not maximum cash flow. That made disciplined tracking essential: when a property is supposed to run near breakeven, you need the numbers to prove it's on plan and not drifting.

What We Built

A unified monthly financial tracker for every entity, covering:

• Monthly P&L per property — rent due vs. rent received, every expense line-itemed, profit before and after mortgage

• Escrow reconciliation — property tax and insurance escrow tracked against actual disbursements

• Acquisition underwriting model — purchase price, comparable valuations, itemized rehab budget, financing terms, and projected rent before any money moves

• Forward payment schedules — seller-financed note amortization with actual-vs-projected tracking

The Decisions the Numbers Drove

1. Refinance timed and measured — Kyle TX Home
The original 7.375% mortgage carried a $2,690.18/month P&I payment. Tracking the full cost stack — including a first-year rate buydown worth $3,123 in documented savings — kept the refinance decision on a spreadsheet, not a gut feeling. Post-refinance: P&I dropped to $2,491.93 and PMI fell from $172.03 to $118.28. Roughly $250/month in permanent housing-cost reduction, verified in the tracker.

2. Over $1,200 in escrow surpluses recovered

Because escrow was reconciled monthly rather than trusted blindly:

• $226.22 surplus check recovered from the Capitol Heights MD Home servicer (December 2025)

• $981.98 surplus check recovered from the Maple Heights OH Home servicer (April 2026)

3. A distressed acquisition fully underwritten before close — Cleveland OH Home
The Cleveland, OH Home purchase was modeled before acquisition: $32,000 purchase price against an average third-party valuation of $89,651.63 (Redfin, Zillow, Xome, and a Realtor estimate) — roughly 64% below valuation — with a $51,000 itemized rehab budget: roof, plumbing, mold mitigation, demolition, and debris removal, each line-priced. Seller-financed at $722.23/month over 36 months against a projected $1,100/month rent, so the property was modeled to carry itself from day one, with positive monthly spread even during the note paydown. Every dollar spent since August 2025 — $23,732.19 through September 2026 — is tracked against that model, with the seller note balance down to $14,865 as of September 2026.

4. Rent reset on data, not instinct — Capitol Heights MD Home
Rent moved from $1,925 to $2,000/month in July 2024 after the tracker's cost history made the case. Thirty-six consecutive months of recorded rent collection are documented.

5. Principal acceleration as a deliberate strategy
The tracker separates "profit before mortgage" from "profit after mortgage" — which made a strategy visible and intentional: Capitol Heights MD Home pays $2,200/month against a ~$1,965 note; Maple Heights OH Home pays $1,000/month against an ~$901 note. Those are equity-building overpayments, chosen on purpose — not costs leaking through unnoticed.

6. One-time costs isolated from run-rate — Kyle TX Home, November 2025
An $8,282.10 month (plumbing repairs plus water softener installation and rodent remediation) shows up in the tracker as exactly what it was: a one-time event, not a trend. Without line-item tracking, a month like that looks like the property is failing. With it, the decision was simple: fix it, move on, watch the run-rate return.

The Honest Part

These are family properties as much as investments. Several months show negative "profit after mortgage" — by design, because of the principal overpayments and the cost-control mandate on family-occupied homes. The value of the system isn't that every month is green. It's that every dollar is accounted for, every strategy is deliberate, and no surprise survives past the month it happens in.

What This Means for MIKA FSG Clients

This is the same system we install for clients: monthly reporting that separates signal from noise, escrow and tax reconciliation that recovers real money, acquisition underwriting before you commit, and KPIs that turn "I think the business is doing fine" into "here's the number."

Numbers above are drawn from K7 Partners' internal financial trackers, August 2025 – September 2026