32 Door Portfolio (1 Quadplex, 2 Triplex, 1 Duplex & 20 SFH)

[Jamel Hamka]

Investment Info:

Single-family residence buy & hold investment in Statesville.

Purchase price: $1,633,625
Cash invested: $3,027,416

This is a combination of 32 doors we have purchased in cash and renovated in cash. True Cap rate is currently 14.41%

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

1. Great Location- being long term holds having an area that was good was most important
2. Good layout- all SFH have either a true Masterbedroom/bathroom or the ability to create
3. Great CapRate- 1% rule bare minimum. Cap rate after repairs, vacancy, taxes, and insurance avg over 14%

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

Wholesalers, MLS, Foreclosures

How did you finance this deal?

All Cash

How did you add value to the deal?

Complete Renovation. All homes have average incredible equity even though we didn't buy to flip.

What was the outcome?

Since we hold every house and pay cash we have incredible cash flow to buy more properties

Lessons learned? Challenges?

Just recently learned how to buy from wholesalers. Wish I learned that earlier. Learned with experience to screen tenants better. Find a few paint colors and use on every rental. Do not get cute. Find good contractors

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

Have my own license so I purchased myself and had no lenders.

[Jamel Hamka]

@Dave Spooner Sorry for the delay. Don’t check it often. We subscribe to and follow the Dave Ramsey plan. We have been on “Baby Step 7” for around 7-8 years. That means we live on a real zero dollar budget, have zero debt (including no mortgage) and save aggressively. Since we have no debt we were able to save up for our first rental in cash. All these homes were purchased over around 6 years using rent and personal money saved through my business. It takes a lot of time to do cash but the overall rewards are much greater. No interest pod ever and 100% of our cap rate is reinvested. We are projected to be earning more money in rent than we are putting in personally in around 3 years. In 30 years keeping the same rate, we are looking at having hundreds of millions a year in rent with over $3 billion in assets....conservatively. The plan works but it takes patience, discipline and a commitment not to use debt.