All Forum Posts by: Khaled El Dorry

@Andrew Brown I also have a demanding W2 job that I enjoy and I get about the same returns 7-10% with turnkey and I’m completely happy. If I were a full time investor I would be pushing for higher returns but quite frankly my alternatives are either put more money in the stock market or keep cash in the bank which just loses value overtime. Once I pay my properties off I will be able to generate $900-$1000 per door and that’s assuming no rent rise whatsoever which is quite conservative. My advise is to do what’s best for you and what you’re comfortable with. There is no right or wrong answer and all depends on what you can stomach risk wise.

I don’t depend on appreciation as that is gambling for me and happy with the lower returns because that works for me. Having said that I just refinanced all my properties and they have all appreciated quite nicely that I can almost make my money 2X over if I wanted to sell.

Really great discussion here. Fun reading the dialogue. Dr @Axel Meierhoefer and I have been exchanging emails about some TK providers and he's definitely a wealth of knowledge. I have also had a solid experience with TK so far. I bought 3 SFH's and closing on a duplex in 2-3 weeks. So far I have about $12k in reserves all generated from excess rental cash and I just refinanced the three homes which will generate roughly $500 extra per month. From an appreciation standpoint since I just refinanced my appraisals came in with roughly $250K in equity in all 3 SFH. I do 25% down payment and finance the rest. All in Florida and I bought them all brand new.

I realize the returns are not as good as BRRR or house hack but I do have a very demanding job and I take the lower return as my time is tied up in a job I enjoy which also generates income for me to buy more properties with.

@Michael Glist Michael - thank you for the feedback. Do you have a lender or two you recommend who I can talk to? Thank you

I will also add they are all single family and duplexes so not a 10 unit and a 26 unit multi family

I’m evaluating a cluster of properties (10 units for one deal) and 26 units for the other. I already have 6 mortgages and starting to run into the 10 mortgages cap limit with traditional lenders. Is commercial loan the only way forward here? Would appreciate some advise from the more advanced investors here. Thank you

@Supada L. Was the repair made a surprise or something you knew coming in and thought it could be delayed? Also if you bought it last summer means you haven’t even owned it a year. Had I given up on my first rental property I would have sold it in 6 months too because

I was $3K in the hole because of a bad tenant situation. Now I own 3 properties (closing on 2

More in a month) and have $10K in extra cash flow and it’s adding up in a good way. If you can not afford or foresee crazy expenses that you should have known about in your due diligence by all means get out quickly.

However if you believe in your due diligence and think you can withstand this initial (and unfortunate) hit then I would hold my ground and let it play out a bit longer. All depends on where you’re at not all of us “experts” tell you here.

Happy to talk on the side to take a look at your numbers too.

Just my 2c.

I made an excel version of this to run numbers real quick and found to be absolutely gold. I can pull it up on my phone and I can analyze a deal real quick. Happy to share if you are interested.

@Bryan Feik do you know if this tenant has long term prospect where he can stay 4-5 years? If that’s the case adding the toilet to accommodate a customer of yours may be a worthy investment long term. If he doesn’t like it he can always move to a more accommodating situation if that makes sense.

@Tucker Cummings I took my 401K and rolled it into a self directed IRA in March when Covid hit the stock market hard and it was very simple. However that was my ex employer who I don't work with anymore and haven't in 3+ years. I don't know if you can do the same with current employer 401K or not but I do know there are a lot of people who use their IRA's (and I may as well) to invest in real estate. Good luck!!

has anyone ever tried completely outsourcing their marketing and deal findings to 3rd party and took over the process from due diligence/run the numbers and then close and operate?

As an example you pay a company or someone X or a fee to run your marketing campaign, find the deals, negotiate and get them under contract then the investor takes over from there?