All Forum Posts by: Kenneth McKeown

Not a deal I'd be jumping at... personally. 

@Mora Clark we haven't had the 1% rule work in DFW for years. Appreciation has been the biggest asset to investing in DFW. 

Most of my net worth is appreciation. Nearly $1M in appreciation in 4.5 years. DFW is hot and I still see it climbing even more... a majority of my clients are purchasing with the assumption that cash flow is minimal and appreciation will continue to happen. But also in your situation - if you're paying $1,900/mo in rent? Hard to see how purchasing ANYTHING could be worse. lol

@Garrett Kennedy you will need to refinance into a conventional loan and take a cash out refi at that point if you have enough equity. I purchased a duplex in 2017 and a quad in 2019 with my VA loans that still to this day have their VA loans on them because the interest rate is so low... it's not worth refinancing and taking cash out. The VA IRRL is also so easy to continue to refinance if rates are low (one I refinanced twice, the other once) and they're both sitting I believe at 2.25% for the next 28-29 years.

Usually the meet ups are with some intent to sell you on something which is why I've mostly networked on my own. 

@Corbindallas I feel like I have a pretty damn good VA story. I've used mine on a duplex + quad and it propelled my investment portfolio.

I feel like this may be just a long random rant/post but here goes nothing.

I started out in real estate, period, on this forum in the winter of 2016 after a bad break up. I was told to pick up RDPD and jump on a website called "BiggerPockets". Well, RDPD got me in the right mindset and BP allowed me to start learning and building connections in San Antonio. I met some great investors, agents, subs and more in San Antonio and even met an individual (who years later was bankrupt and out of business) who I felt like I had to force to meet for lunch.. ate as fast as he could.. left once I was done with questions and never heard from again. It rubbed me the wrong way back in 2016 and I knew that I would never allow myself to be THAT person - regardless of the success I may or may not have.

Fast forward a year - I moved to Dallas and began my journey investing in rental properties, primarily by occupying them. This is where it comes to fruition (as I was thinking yesterday about how I've sourced all my deals) and began to realize, relationships are EVERYTHING.

1. Duplex purchased in the summer of 2017. Off market, off a friend who posted it on Facebook. I gave up my commission to swing the deal. I still have this duplex to this day cash flowing with 200k+ in equity.

2. SFH purchased in December of 2017 on the MLS but it was from an agent/friend of mine who brought it up to me. House hacked/flipped it over 2 years, rented it out for 18 months and then sold it for 100k+ profit.

3. A 4-plex in September of 2019 from a DM on BP wanting me to help him sell it. We discussed price and I figured I'd buy it. Still holding it to this day with 125k+ in equity. 

4. SFH purchased in March of 2021 from a friend/agent locally (off market) that asked me to help sell a families inherited property. Wound up needing 70-100k+ in work so I kept it and it will be a life long rental.

5. SFH Purchasing in November of 2021 from a friend/agent locally that tossed me the idea (off market) where the numbers made sense. I'll be keeping this and holding it long term as well.

By the end of the year I'll be over $15k/mo in rental income built off relationships with people in real estate. Now the purpose behind this post? I recently helped a very YOUNG first time investor who had no desire to sign a buyers rep agreement. Had no real reason to 'use solely use one real estate agent'. He didn't see the value in it. Also, this was after I gave him all of my subs contacts so that he could use on a remodel. I got licensed as a real estate agent in the summer of 2017 when I moved to Dallas and since have closed over 300 homes and run a real estate team locally here. All of my business I generate as well as a majority of the rental properties I acquire are all from the relationships I've built in the short 4-5 years I've been in the business. It's what allows me to be living the best life I could ever imagine by doing the best job in the world - helping others make one of the biggest financial decisions of their life.

With that being said, regardless of your age or experience - network.. like.. crazy! Relationships are everything in this business and could easily be the reason you fail or succeed. To give you an even better picture - my best friend and owner of the 2nd largest mortgage brokerage in Texas - I met off BP. My other good friend works for the title company I send all my business to. Three of my agents on my team are past clients and good friends. The list goes on and on. So at the end of the day folks - don't be scared to get out there and meet people. Create a good team. Great friendships. And provide value. It can change your life. It absolutely has changed mine. 

There's so many ways to do this. I purchased a 620k half duplex in East Dallas / Knox area and I custom built it with an AirBnb suite + have a roommate paying me $1,350/mo. I even have an office I could rent out as an additional bedroom but with the AirBnB and roomate it easily covers my mortgage for a 2020 build. Also - it's now likely worth close to $800k in two years. 

Constantly bug us. That’s our job lol

@Nick Belsky what did he purchase that duplex for? lol - $3200/mo is a wild amount for rent unless we're talking about a new modern/downtown duplex.