Closing of a good year and look forward to next

[Khaled El Dorry]

My journey started 5 years ago as a retirement plan as I enjoyed my W2 and wanted to replace my current income after all my properties were paid off.

Today we sit on 9 units between SFH and duplexes in Florida and Ohio where we grew 3X in 2021. They bring in around $5,300 pre vacancies and repairs but includes PITI and property managemt.

What’s next?

Our ultimate goal is to hit $20,000/month in FCF so that means roughly 3.5-4X what we own today so still a long journey ahead. We do it using vetted turnkey providers which I know doesn’t scream high returns but my alternative is money sitting in the bank given that I have a job I’m happy with, invest in the stock market and have a 401k so this is ok for us.

Hopefully in 2022 I can double the size of the portfolio using cash we have on the side, home equity we have now and maybe 1031 exchange. Also this is the year where I put my properties in LLC's to reduce liability as I can't run it in my name any more. Another goal is to look into professional real estate investor to take advantage of some of the tax opportunities that I haven't done yet.

My advise to people getting started is do what works for YOU and don't seek approval of everyone. That doesn't mean you don't get a mentor or run ideas by people who are smarter and more experienced than you. But at the end of the day it is your life and BRRR, flipping or whatever other method may not be best for you. Don't try to rush and be methodical in your approach. I built a spreadsheet on my phone and if the property doesn't fit my criteria I walk despite how eager I am to make a deal.

Hope everyone has a tremendous 2022 and here is to another great year in real estate investing.