All Forum Posts by: Khaled El Dorry

@Goredy Tess

Here is a decent way to start looking at it

Rent per month

- PITI

- repairs (if it’s a new property you can make it 3% rent and older property go 5-6%)

- CAPEX (same as above)

- property management (10% of rent if choose to use them)

- vacancy (5% is what I use but a good property management company can give you a number)

Subtract all these numbers from rent and you will get a number

Multiply that number by 12 and divide by the cash you put down and you will get your CoC return

Example - property purchased for $150k with 25% down. Cash to close including close will be in the $40k range

Assume rent is $1200 per month

PI on a 30 year mortgage is $538 @4% interest

Insurance $80/month

Taxes $100/month

Repair accrual: $60 per month

CAPEX accrual: $60 per month

PM accrual: $120 per month

Vacancy accrual: $60 per month

Total expenses + accruals = $1038 per month

Cash flow per month = $1200-$1038 = $162/month

CoC return = $162*12/$40000 = 4.86%

All these numbers are fictitious but just want to show you the mechanics. I hope I didn’t screw up the math since I’m doing this while putting my son to sleep 😴

Thank you all. Yea absolutely. Won’t “go live” until after closing but just all the other apps like Guesty, price labs, etc…

Read about the $4k method in the book so good there as well 👍👍😂 thanks Luke. Heading over to meet with Tim Grilliot and Yok next week to hopefully get moving on the next one.

Hello - I'm transitioning/diversifying from LTR (9 doors) and managed by PM's to STR and will be self managing using price labs and Guesty along with ABNB and Vrbo to self manage for my first property. If it goes as budgeted on paper I will be pulling the plug on a second within 4-6 weeks.

My question to the resident experts is how many days before “go live” or closing do I have all these accounts set up so when I close and the properties are cleaned and licensed I can start advertising?

Hello - I'm transitioning/diversifying from LTR (9 doors) and managed by PM's to STR and will be self managing using price labs and Guesty along with ABNB and Vrbo to self manage for my first property. If it goes as budgeted on paper I will be pulling the plug on a second within 4 weeks.

My question to the resident experts is how many days before “go live” or closing do I have all these accounts set up so when I close and the properties are cleaned and licensed I can start advertising?

Good morning - I'm transitioning from LTR (9 doors) and managed by PM's to STR and will be self managing using price labs and Guesty along with ABNB and Vrbo to self manage for my first property. If it goes as budgeted on paper I will be pulling the plug on a second within 4 weeks.

My question to the resident experts is how many days before “go live” or closing do I have all these accounts set up so when I close and the properties are cleaned and licensed I can start advertising?

Thank you

@Alicia Marks secure my kids’ future. I have a W2 that I’m happy with and I use the extra income to invest in real estate long term so it’s there for the kids.

@Rubin Thomas thank you Rubin and happy new year. No mainly for liability purposes to protect myself since everything is my name.

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.

@Mj Schindler this is what I go by

1) rents between $1000 and $1500 per month per door

2) cash flow positive after PITI, 7% R&M, 7%CAPEX, 10% PM and 7% vacancy (returns are irrelevant to me)

3) landlord friendly state (Florida and Ohio for me)

4) turnkey and I do my own inspection. I have a very demanding W2 so that’s what works for me.

These are kinda the big ones for me but obviously not everything. Hope this helps.

@Kaylee Walterbach went from 3 doors to 9 and have 6 more under contact. 400% growth YOY and 6X cash growth YOY. 50% of my original goal.