Want a turnkey cash flow rental property for Passive Income?

//Want a turnkey cash flow rental property for Passive Income?

Want a turnkey cash flow rental property for Passive Income?

A friend and I were discussing rental properties recently and I mentioned one of my recent acquisitions in Dallas, TX.  He thought it was particularly interesting so I decided to share some of the specific details here.  I find Texas to be a compelling buy & hold market right now for a few reasons:

  • Low Prices: My 4 bed, 2 bath, 2200 sq/ft house was $112k
  • Rents are relatively high (that home rents for $1295 / month)
  • Economy is BOOMING à check out Texaplex video
  • 4 of top 10 fastest growing metro areas in the US
  • JOBS: Texas added 700k+ net jobs in last 10 years
  • Nearly half of new US jobs since 2009 were created in TX

 

This particular property was a “conventional” purchase where I came up with a 20% down payment.  The mortgage, interest, taxes, and insurance costs are $760/month.  Tenant pays utilities etc.  The property management company charges 9% of rents to be the primary point of contact for any issues, collects rent via certified check/money order, and directly deposits it into my account each month.

The positive (take home) cash flow after all expenses is $420 / month.  For those keeping score that equates to a 20%+ [cash on cash] return on the down payment.  Compare that to what I was earning in my bank account, stocks, or mutual funds…crushing it.

My favorite part about this investment is that I’ve never spoken to my tenant, actually – I’ve never even been to Dallas.  I just receive courtesy calls from my property management company making sure I’m a happy camper.  So far it’s been a completely passive source of income.

If you’d like to learn more about my experience with “turnkey cash flow rentals” just give me a shout.

Cheers,
Sean

PS – Don’t forget I pay (at least) $2k finder fees on any ugly properties you bring in for me to fix & flip.

My investors earned $1k in interest payments from me last month on their secured loans against my properties.  Want to earn 10% or more on your money? Bring the property, I’ll fix it and find someone looking to rent a home on Hilton Head or any other location.
By | 2018-05-10T00:54:24+00:00 October 9th, 2013|Uncategorized|6 Comments

About the Author:

Sean Katona is a full-time real estate entrepreneur - buying, building, fundraising, and managing property across three states. He is a private money lender with over seven years of experience in marketing, sales and advertising from his time working at Microsoft, EA Sports, and a mobile startup. Sean graduated from the Foster School of Business, University of Washington with concentrations in Marketing, Sales, and Information Systems.

6 Comments

  1. Rachel January 9, 2014 at 4:24 pm - Reply

    I just read an ebook called Gen X Landlord that is for people wanting to get into real estate investing. The author recommends taking care of your first rental property so you know the ins and outs of real estate management before turning it over to property management. What do you think of this idea?

    • Sean Katona January 10, 2014 at 12:46 pm - Reply

      You’ll learn a ton doing it yourself, save more money, but spend more time. It will also help you manage your property managers more effectively in the future. We manage some property in house and use third parties management companies as well.

      • Rachel January 10, 2014 at 2:29 pm - Reply

        Thanks, that’s helpful. Do you feel that managing a single home or a duplex is manageable while also working a 40 hour/week job?

  2. Dyson Worth January 25, 2014 at 2:43 am - Reply

    Hi Sean,
    Great example of a cash flow property, in fact I recently got back from Texas checking out the market out there around Dallas, Frisco, The Colony, etc. Just sent you an email introducing myself but I’m a young investor in Orange County as well, started buying cash flow properties back in 2009 and today I’ve built a multi-million dollar portfolio with properties in a variety of markets from the coast to the Inland Empire. Anyway, thought it would be great to meet up to discuss our strategies and perhaps there might be an opportunity for us to work together in the future. I believe I saw your ad on Craigslist for the seminar, so I’m looking forward to it. Seminars are a great way to network. I just held one at UCI, Cal State Fullerton, and th the Anderson school of Business at UCLA with great results. It’s amazing how many young people are out there that are interested in learning more about this business. I look forward to meeting you and hearing about your specific experiences, strategies, and goals.

    • Sean Katona January 27, 2014 at 9:46 am - Reply

      Thanks Dyson, looking forward to sitting down together this week. I completely agree!

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