How many doors do you own/goal?

Question

Hello BP

I've read a number of posts and discussions, and come upon this phrase a number of times. How many doors? Could someone confirm if it means door per SFR, or multiple doors for multi-family units like 4 doors for a fourplex?

Terrence

David Faulkner · Answer

"Doors" is the number of rental units ... 1 SFR = 1 unit = 1 door. 1 duplex = 2 units = 2 doors. 1 fourplex = 4 units = 4 doors. Which reminds me of a joke that my 5 year old son tells:

Why does a chicken coup have 2 doors?

Because if it had 4 doors it would be a chicken sedan.

Amit M. · Answer

just keep in mind folks...not all doors are created equal (to say the least.).  i.e. I prefer a few high quality doors than a bunch of cheap ones...like really nice solid core made of exotic woods with inlays, rather than a bunch of $11 HD special hollow core glorified cardboard doors.

Jagdish Bajaj · Answer

@Ned Carey - well said, +cash flow is the right goal to have.

Austin Fruechting · Answer

Doors = Rental Units

20 SFR = 20 doors

20 unit apartment building = 20 doors

Terry Lao · Answer

Number of doors is just one aspect for a goal. Another goal is the net cash flow per door, or ROI, or cash on cash return per door.

My goal is to have 16 doors, with over $100 net cash flow per door, with double digit returns for ROI/cash on cash return.

To date, I have 8 doors, with net cash flow about $150-200 per door, and last year with ROI of 14%.

Terry

Ned Carey · Answer

I don't have a goal for number of doors. I think that is a poor choice of goals. A better goal is a certain amount of net positive cash flow each year.

If you focus on a certain number of doors as a goal it may cause you to do poor deals in order to get to your number faster.

Dean H. · Answer

@David Faulkner

David I voted on the great joke just make sure you give the credit to the 5 year old, lol

Ronan M. · Answer

LOL. Nice one @David Faulkner :)

Terry Lao · Answer

@Jerry Soer

Jerry

I saw your original post about about getting starter home. There another post by person who lives in silicon valley (bay area), and talks about investing in out of state due to high cost in her area.

https://www.biggerpockets.com/forums/62/topics/434...

Everyone has their opinion as which path is best for them. I like options, the more options the better. Also, I believe the single most important aspect of the whole process is the loan. Unless you are paying all cash, then it is the loan. I have a mortgage background many years ago. I use a reverse analysis approach, meaning I do the numbers and see how much I can qualify for a loan. Then go find the property with the target cashflow or ROI that I am targeting.

I'm okay about connecting, but not sure how. Do you send me your email address? or some setup on the profile that I need to do?

Terry

Jerry Soer · Answer

Hey @Terry Lao. I'd like to learn more about the Las Vegas investment market. Wanna connect?

How many doors do you own/goal?

Most Popular Reply