All Forum Posts by: Kenneth McKeown

@Adam Westbrook those are great numbers for an A class neighborhood. I'd find an agent and jump on that.

@Sehun Kook Indeed I will be. I don't have any desire to purchase in a war zone with terrific cash flow. I've seen what an eviction can do for cash flow and I like C-class neighborhoods... maybe B. DFW can be overwhelming for newer investors but all you have to do is study and dive into this world! It's a blast. Appreciation has been kind to me with my investments - but I also know that won't always be the case. But I definitely won't ever own a condo - just my preference.

@Sehun Kook I'll go ahead and try to answer most of your questions.

1. Yes it's attainable but you'll be sacrificing one if not a few of the following: Area, condition, appreciation. The monthly rent / purchase price can vary so drastically. You will get a higher ROI in lower income areas. Lower ROI in your North Dallas suburbs, just as an example.

2. Cash flow can be obtained in many different ways. You may be breaking even after renting to two roommates in a live in SFH house hack. You may cash flow $100's+ if you put 20-25% down and buy an older MFH in Arlington or FW. You may be negative cash flow if you buy a SFH in Frisco, etc. It truly varies and will depend on that particular investors goals.

3. You'd be about right. I have a duplex that rents for $1500+/side and a SFH that I'm renovating nicely and it'll rent for $2300+ but it's not your typical rental. I don't touch condos/apts so that's a question for someone else.

4. So you own a primary in Frisco? I'd look at SFH or MFH in a C class neighborhood if you're looking strictly for cash flow. There are plenty of areas in the DFW metro-plex that I'll be investing in - as I will be buying 2 more investment properties this year alone.

5. Not a condo fan. I'll pass on this question lol but if that's the avenue you'd like to go around you do you. You kinda hit it on the nail though, no true ownership (HOA can change whenever, and dictate a lot), no appreciation, low cellar-living tenants, high turnover (not many choose to live in a condo long term, versus I have tenants that will be living in my SFH or MFHs for decade+). But again, I have friends that all they do is buy 50k homes out in the middle of no where or south Dallas homes or very cheap homes. Just not the route I'm going - but everyone is different!

6. Of course - that's what this forum/site is for! Network your butt off and create a great team and your success will come! I've seen it from so many first hand - including myself.

@Shelby Matson playing the game right. Buying right. Having reserves. I've been able to build a substantial amount of equity in each home quickly so far (won't always be the case I know). The gap between mortgage v rent though will only continue to grow. 

@Account Closed I have a 3.75% mortgage on my MFH. This also isn't Europe nor do I have any desire to invest in Europe. 

So yes - the interest rates I have on my homes - are great. But thanks!

@Jennifer Pascon I'm still buying personally in DFW. As mentioned above if you're more interested in cash flow - smaller towns will be better. I'm in the game for the long haul though - so I'll keep buying in DFW.

@Jennifer Pascon the DFW metroplex isn't the market you want to look at in Texas if you're strictly looking at only cash flow / highest immediate return. 

@Jay Hinrichs I was part time for about 6-12 months then left. Not hard to match income of a teacher with a realtor as long as you're a hustler such as myself. I just knew I couldn't grow much being held to a 9-5 or really a 7-7. 

@Ivan Loza I've been able to really take off as a realtor. However, not many do. It's like an 88% attrition rate where people fail miserably. I've only been a realtor for two years though - but it's safe to say I have a job that will keep me plenty happy for decades to come. It's not for everyone though and I highly discourage people to take my success and try to duplicate it. I just don't think it's possible for many if any (and I could write a book on that lol). 

That's insane though that you're able to live off such a short amount of living expenses. I definitely could do better with my monthly expenses, but I've also began making much better money so I've enjoyed life a little more this year (tons of traveling). 

I've been able to accumulate a lot of properties as primary occupant homes. I still believe I could get a home under 5% too with where interest rates are - but I wouldn't expect for long. Interest rates are at a great value right now. You definitely have a great setup and an absolute beast of a story to tell when you're in 30's. I'm 29 and hoping to be right there around 35 myself (50 doors by 35 is the goal.. and my brokerage also has a way of passive income too). Love the hustle though!

@Ivan Loza props to saving $30,000 in Dallas as a teacher. I know, personally, that's nearly impossible. How do you do it? I worked in a district in DFW and my paycheck every month was $3800/mo (with my coaching & masters stipend). Total for the year to be around $45,000. That means I would have to live off $15,000 for the year - or $1,250/mo. Would love to see your breakdown!

I ended up leaving teaching/coaching(loved to coach) and pursued my real estate dreams full time. It's been an absolute blast and I wouldn't change it for the world, but nonetheless, it's impressive! 

My route is #1. Definitely. Leveraging other folks money to make me money! Interest rates are great right now - so no use of #2 and paying them down. Now if your mortgage rates were 6%++ then that would be different. I currently have three loans out at 3.75/4.25/3.25 that are great. Now #3 I can't vouch for as that's not my where my expertise lies. If that's a niche you have and know a lot about, it may be a great route, but it wouldn't be for me. 

Love your * at the end - as I'm single and very much could have the same happen to me, ha! Keep it up though man, love it!