My REI Story - Nothing to $5M Portfolio

[Kenneth McKeown]

Hey y'all. Long time BP member here and I figured it was time while I had a slow day to detail my story.

Back in 2016 I was finishing up my Masters in Education at Texas A&M while dating a woman long distance and chose a high school teaching job in San Antonio for the better of that relationship. Well - a week later she called and said she wasn't flying down to see me (the morning of her flight). So I was stuck - in San Antonio... and all of a sudden had way too much time on my hands. I was mindlessly scrolling Facebook shortly after this and saw a friend from HS (who was not the best kid nor the most intelligent) accepting an invite to an event called "How to make $50k in a month" and I figured it was the biggest scam ever. Well - it wasn't... and he was the teacher/speaker. I reached out and wanted to know HOW - as that was my entire YEARS salary. He said two things - Rich Dad Poor Dad & BiggerPockets. Let's just put it this way guys... my life would never be the same.

I went to countless REI meet-ups, watched countless podcasts, read so many books (after going a decade having never read ONE) and I got obsessed. I moved to Dallas at the end of that school year and finished my real estate classes to become a realtor on the side while I was teaching my second year of high school. I had learned so much in San Antonio and failed so many times in acquiring a property that it was less than 60 days in Dallas and I had my first property - a duplex with my VA loan. It may have taken me 5 months to close my first deal - but I wound up closing 6 in the next two months & I knew at the end of the school year it was time to take the jump - to become a realtor full time.

I'll spare you guys the rest of the story but it's been incredible... just some of the feats I've accomplished are:

1. Sold over $100M in real estate & built a team only to tear it all down and be basically solo again.

2. Traveled the world.

3. Accumulated over $400k a year in passive income.

4. Become a multi-millionaire.

5. Acquired over $5M in real estate - which includes the path of buying a duplex with my VA loan, a SFH 5 months later with a 1% down loan, a 4-plex with my VA loan 2 years later, built a custom dream home with an AirBnB suite, completed a horribly over budget BRRRR SFR, completed another SFR that went way over budget, sold my quad for a 4-unit office commercial space, sold my 4-plex for a luxury cabin in Oklahoma AND most recently bought a brand new home to use part time while visiting my girlfriend/future wife in Florida.

All of this wouldn't have ever happened if my butt didn't get dumped. I can tell you - everything happens, truly, for a reason. But you have to put in the work and absolutely grind & hustle. Make sacrifices. I feel like my consistency and discipline over the past 5 years is truly what has led me to where I am today.

I'd love to answer any questions - help out the newbies or even educate the well versed. AMA! (ask my anything!)

[Steven Foster Wilson]

Quote from @Kenneth McKeown:

Quote from @Nicholas L.:

@Kenneth McKeown

-is the 400K gross or net?  what's the rough breakdown in terms of rents, dividends, etc.?

-do you still own the SFRs that you BRRRRed?

-what do you do with the cabin in OK - STR?

So the $400k includes my brokerages realm of passive income - which is purely NET. I've made about $300k in the last 12 months off that. This is the breakdown of my portfolio:

$2250 rent || $1650 mortgage - Turn key / remodeled BRRRR home
$2750 rent || $1650 mortgage - Turn key / Remodeled home. Didn't refi out - so have a solid amount in it.
$11k rent || $7500 mortgage - Commercial Building
$2k rent || $4k mortgage - Primary residence that I live alone in - but it has an AirBnB suite in it. 15 year note. 1.875%
STR in Oklahoma just finished framing. Q1 completion. Will be around a $5k mortgage and I should easily be pulling north of $10k net after all expenses. VRBO/AirBnB in Broken Bow.
My SFR in Florida is December completion. STR as well - unique situation here where eventually it'll turn into a LTR.  

 Enjoyed reading your story. Keep that ball rolling! I know once you get the bug it is hard to stop.