All Forum Posts by: Khaled El Dorry

@Bhavin Doshi there is also the turnkey option. If you find the right team it’s almost exclusively hands off passive except the due diligence piece and a visit to the properties to check on them from time to time. The catch is your returns will be lower than what the pros do when they find a distressed property and a motivated seller as they trade their time and system costs for the large down payment you may have to put down. For $60k you can get something in the neighborhood of $190k (ish) worth of properties in turnkey assuming 25% downpayment (which is what I do) assuming some closing costs and a little fudge factor.

So again just like almost everything in real estate. What do you want and what are your long term goals.

@Charles Carillo I haven’t personally done any no money down strategy and do find it a bit too risky for my taste but curious why do you call it a recipe for disaster when a lot of people you read about have done it so successfully?

@Brandon Fuhrman it’s very hard and speculative to control appreciation as anything can happen and a property value soars 20% or tanks 10%. If you are looking to get in and out very quickly you are taking a risk this early in the game and you are better off flipping or wholesaling in my Opinion to make a quick cash turnaround. If you hold a property 10 years the odds greatly increase in your favor that it will appreciate and cash flow will self sustain it. I would advise to look for cash flow but at the end of the day it all depends on what your long term goals are.

For me personally I want all my income from work to be replaced by the time I’m 45 so I buy and hold and look for good cash flow. That generally means I don’t consider appreciation at all in my math and despite that my 3 properties have appreciated cumulatively about $80K in the 3 years I’ve been investing. So I think as long as you buy in a good area appreciation in the long term will take care of itself. So 3 down and 37 to go for me (I have a duplex under contract)

Welcome to the game and best of luck.

Hell BP community - I am looking to expand my portfolio and recently joined (but haven't attended yet) one mastermind group for people with W2 jobs and really looking forward to it. 1 is good but more is better and wanted to get a list of other groups that help people with W2's navigate the market. I have 3 SFH's and closing on my first duplex with a goal of buying 32 doors in the next 3 years. Any info would be appreciated it. I'm not interested in the $20K groups as I feel that's overkill for me. I would rather put that in a good deal.

I have been going the turnkey route and it has gone well but it doesn’t scale as fast as

I would like thus looking to network more to see

If I can have a good team to partner with.

Thank you.

@Dean S. I break it down into good debt and bad debt.

Bad debt = credit cards, car loans, etc... these I try to pay off at all times (and not have them in the first place)

Good debt = mortgage on a rental property. In this department at this point I’m still building wealth so I’m not using the cash flow I make off my rentals (roughly $1000/month) to pay off any of my properties until I buy all the real estate I want to establish my goals. I’m at 3 doors now and will be at 5 in 3 months and want to get to total 33-35 doors. Once I hit these I will use 50% of the cash flow to pay my lowest debt investment and work on the next one, etc...

After all that - I’ll pay off my own house and then call it a retirement. Of course I have to execute all that first :)

My 2c

Computer engineer here

@KC Conti I lived in Texas and bought in Florida and was almost sweat free (there were some hiccups) but I managed 3 SFH's remotely and had great success. Please reach out if you need

More detail.

@David Boroughes are you maxed out on 10 loans? Have you considered paying off one loan or 1031 exchanging a few properties?

@Steve Donovan good insights and points well made.  Thank you.  

Dear BP community,

Wanted to solicit feedback on a few options I want to consider on my next step. I own 3 SFH's and closing on a duplex in 3 months and at a crossroads of where I'm at and how to move forward.

I have a demanding W2 job at Amazon and I don’t have the time to be a “traditional” investor where I spend the time knocking on doors and negotiating, etc... This is something that won’t change as I actually like my job and planning for the future vs. I have to quit now.

So far I've done everything turnkey with good (but not fantastic) success. I would say my CoC returns have been roughly 6% after vacancies, repairs, etc...

I was able to muster up more cash and I can invest up to $200K in the next 6-12 months and I want to set a direction. My ultimate goal is to close on 7-8 4 plexes in the $1000-$1200 per door per month rent range assuming the same cost structure compared to my current properties to hit my retirement goal. Once I hit these properties it’s time to pay them off and live off the cash flow when it’s time. I wouldn’t even mind doing a flip or a wholesale to expedite paying them off + whatever extra cash flow I get from rentals.

1) Option A: build a team of realtors, contractors, property managers, etc.. and I can find properties with better returns and much better odds of finding 4plexes. I don’t mind doing hard money loan to refinance later as my credit score is 800 ish +/-

2) continue on the turnkey path and buy them very quick and pay them off knowing fully well that 4 plex turnkey don’t exist so I have to hit my 10 mortgage limit (not interested in creative financing right now) and pay off 1 loan quickly and buy another, etc... then rinse and repeat.

3) combination of both 1&2

After I close on my duplex I have 5 more loans to go to hit my 10 loan cap so I want to be more strategic to take advantage of the interest rates being as low as they are right now.

Any feedback or tips would be greatly appreciated. I thought about joining one of these masterminds but maybe I can get some sound advise here first as I don’t really want to spend that kind of money and obviously the time commitment that comes with it given the work I already have to for my W2 job.

Thank you and happy Friday.