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All Forum Posts by: Khaled Seirafi

Khaled Seirafi has started 66 posts and replied 120 times.

Post: Best Areas in DFW to invest in

Khaled SeirafiPosted
  • Investor
  • Orange County, CA
  • Posts 125
  • Votes 29

I'm currently looking at purchasing a property, preferably multi-family, in the DFW area. I'm an out-of-state investor and am looking for properties in the $500-600K range. My goals for my new purchase will be mainly long term growth, although some decent cash flow would be nice too. But again my priority is equity growth. What areas would you suggest that are safe, have solid job growth, good schools, hospitals, etc. Any up and coming areas to pay attention to? Essentially A or B areas with the potential for growth. Also, what are the paths of progress to look at? Many thanks!

Post: Best Areas in Dallas to Invest In

Khaled SeirafiPosted
  • Investor
  • Orange County, CA
  • Posts 125
  • Votes 29

I'm currently looking at purchasing a property, preferably multi-family, in the DFW area. I'm an out-of-state investor and am looking for properties in the $500-600K range. My goals for my new purchase will be mainly long term growth, although some decent cash flow would be nice too. But again my priority is equity growth. What areas would you suggest that are safe, have solid job growth, good schools, hospitals, etc. Any up and coming areas to pay attention to? Essentially A or B areas with the potential for growth. Also, what are the paths of progress to look at? Many thanks!

Post: Best Areas in Dallas to Invest In

Khaled SeirafiPosted
  • Investor
  • Orange County, CA
  • Posts 125
  • Votes 29

Hi everyone,

I'm currently looking at purchasing a property, preferably multi-family, in the DFW area. I'm an out-of-state investor and am looking for properties in the $500-600K range.  My goals for my new purchase will be mainly long term growth, although some decent cash flow would be nice too. But again my priority is equity growth. What areas would you suggest that are safe, have solid job growth, good schools, hospitals, etc. Any up and coming areas to pay attention to?  Essentially A or B areas with the potential for growth. Also, what are the paths of progress to look at? Many thanks!

Post: To NNN or Not to NNN? That is the Question.

Khaled SeirafiPosted
  • Investor
  • Orange County, CA
  • Posts 125
  • Votes 29

@Bennet Sebastian I'm not quite sure about industrial space in this area (Bay Area). I do know that commercial spaces have mostly been leased as NNN. But since Covid hit, there's been a lot of movement away from the Bay Area and California in general. So I've heard leasing agents say it might be worthwhile to get a non-NNN lease. But, they also knew that we are looking to eventually sell. They may be trying to get us to get on board quickly and sell through them instead of telling us to be patient to find that NNN lease. As for NNN expenses, yes our property taxes are quite low. The property was bought in the early 80s. I'm not sure how it is in other states, but when you sell in California, the property tax base will be reassessed and that would double or triple the tenants' share overnight. That is unless they work out a deal with the new owner. I had one potential tenant even ask me if we're planning on selling out of fear that exactly that would happen.

Post: To NNN or Not to NNN? That is the Question.

Khaled SeirafiPosted
  • Investor
  • Orange County, CA
  • Posts 125
  • Votes 29

Thanks @Cason Acor. Right now, we take care of water expenses (we don't have separate meters for each unit). But, I'm thinking of offering two months free rent on our ads, as well as to lower the rent somewhat while aiming for a NNN.

Post: To NNN or Not to NNN. That is the question.

Khaled SeirafiPosted
  • Investor
  • Orange County, CA
  • Posts 125
  • Votes 29

So I have a vacant commercial space in San Mateo that I've been trying to lease out. Normally, I only do NNN leases for our commercial tenants. Now I know that with these uncertain times, it might be a stretch to hope for a tenant who'd be willing to sign a NNN lease. But if we were to sell the property (it's a mixed use building with two commercial spaces downstairs, the other commercial space is on a NNN lease), would it hurt its valuation if this space were leased out with a non-NNN lease? If I am able to get a tenant who'd sign a NNN lease (probably not going to happen, but let's just say hypothetically) and then I decide to sell, that will cause their share of the property taxes to at least double and perhaps triple overnight due to the property tax base reassessment. The other space is paying about $260 per month for property tax as it is. So, that would go up to $520 to $780. Not sure if it would be ethical for a new tenants to have them sign a NNN lease while we have the intention of selling.

Any thoughts?

Post: To NNN or not to NNN? That is the question.

Khaled SeirafiPosted
  • Investor
  • Orange County, CA
  • Posts 125
  • Votes 29

So I have a vacant commercial space that I've been trying to lease out. Normally, I only do NNN leases for our commercial tenants. Now I know that with these uncertain times, it might be a stretch to hope for a tenant who'd be willing to sign a NNN lease. But if we were to sell the property (it's a mixed use building with two commercial spaces downstairs, the other commercial space is on a NNN lease), would it hurt its valuation if this space were leased out with a non-NNN lease? If I am able to get a tenant who'd sign a NNN lease (probably not going to happen, but let's just say hypothetically) and then I decide to sell, that will cause their share of the property taxes to at least double and perhaps triple overnight due to the property tax base reassessment. The other space is paying about $260 per month for property tax as it is. So, that would go up to $520 to $780. Not sure if it would be ethical for a new tenants to have them sign a NNN lease while we have the intention of selling.

Any thoughts?

Post: To NNN or Not to NNN? That is the Question.

Khaled SeirafiPosted
  • Investor
  • Orange County, CA
  • Posts 125
  • Votes 29

Hey there,

So I have a vacant commercial space that I've been trying to lease out. Normally, I only do NNN leases for our commercial tenants. Now I know that with these uncertain times, it might be a stretch to hope for a tenant who'd be willing to sign a NNN lease. But if we were to sell the property (it's a mixed use building with two commercial spaces downstairs, the other commercial space is on a NNN lease), would it hurt its valuation if this space were leased out with a non-NNN lease? If I am able to get a tenant who'd sign a NNN lease (probably not going to happen, but let's just say hypothetically) and then I decide to sell, that will cause their share of the property taxes to at least double and perhaps triple overnight due to the property tax base reassessment. The other space is paying about $260 per month for property tax as it is. So, that would go up to $520 to $780. Not sure if it would be ethical for a new tenants to have them sign a NNN lease while we have the intention of selling.

Any thoughts? 

Post: To lease commercial space or leave vacant before sale

Khaled SeirafiPosted
  • Investor
  • Orange County, CA
  • Posts 125
  • Votes 29

@Matthew Mazur I think I would prefer marketing a pro-forma NOI. But to your second point, I would imagine that finding a tenant for someone interested in buying is much easier said than done. Of course commercial property has taken a huge hit across the country, but has been hit especially hard in the Bay Area. And I'm not wanting to hang on to this property for too long. Will be speaking to a number of agents to get different opinions as well.

Post: To lease commercial space or leave vacant before sale

Khaled SeirafiPosted
  • Investor
  • Orange County, CA
  • Posts 125
  • Votes 29

Hi there,

My family owns a mixed use building in San Mateo that we're thinking of selling in the not too distant future. It has 5 residential units and 2 commercial spaces. We have no problems renting out the residential units and one of the commercial spaces has been rented out on a NNN lease for another 2 years with a 5 year option to renew. However, we've been trying to lease the 2nd commercial space since last December with no luck. My question is does it makes more sense to leave it vacant before selling or make sure to have a tenant in there and then sell?


I recently asked a commercial agent and his opinion was that I should leave it vacant to cast the widest net for potential buyers, i.e. not to exclude business owners who would want that space for themselves but would also like to purchase the entire building to rent out. As you all know, commercial spaces have been tough to lease out. But do we run the risk of devaluing the property if that space is vacant and buyers and agents use the GRM to valuate the place?

I should note that we had a number of people contact us who represented business owners who wanted the space for their business but also were interested in purchasing the place. Any thoughts would be welcome.