Kyle McCorkel from www.realliferentals.com talks about his real life numbers on his rentals
140-Character Bio: Father, Husband, Son. Industrial Engineering Consultant, part time options trader and real estate investor.
1) How much simple passive Cashflow are you making today and how are you doing it?
(You don’t need to give a number if you would like privacy. You can be vague such as halfway to quitting my job, cover my mortgage, Make 25% of my expenses, over $10k, although people like when people open up the kimono.)
About $1,700 per month PRO FORMA – accounting for a conservative amount of vacancy, maintenance, capex and management. 7 rental properties and counting. It is passive for the most part because they are all professionally managed. I spend very little time after the initial acquisition and rehab.
2) What is your Han Solo moment – Han Solo and his buddy Chewbacca from Star Wars were cruising around the galaxy as lowlife smugglers but then cross paths with Luke and Leia and his life took a pivot point. Describe the resistance that was the catalyst for change.
Did you “burn the boats” or did you let it happen naturally – was there an internal (you decided to make a change on own – what was thought process?) or external trigger (ie got fired from your job)?
I love Star Wars 🙂
I can talk about the moment when I realized I didn’t want to be a high powered consultant for the rest of my life. Then I realized that I had NO IDEA what I wanted to do with the rest of my life…
3) Worst life/business moment what did you do after? Lesson learned?
I could take this multiple directions…would like some examples of what others have answered…
4) Current 2-week experiment and 6-month project? (90-180 day goal) A mark of a high performer is to put your ego aside and accept the help of others and mastermind maybe folks can help you by you asking.
2 week experiment: I recently took on a “mentee” and asked him to help me find deals by driving for dollars.
6 month project: building a direct mail campaign to increase my deal flow.
5) What is your simple passive Cashflow number? Now imagine you had 2x that amount… Describe your ideal day, detailed routine, and what projects you are working on.
Assuming you mean how much cashflow I need to not work?
$6K per month and my wife and I could comfortably both not have to work, so that is the goal right now. That might increase depending on where we buy our next house (in a few years) and how many kids we have.
2x that amount…I’d wake up early, before the kids, and do my “Miracle Morning” routine, including meditation and a 1 hour workout. When the kids and my wife wake up, we would do something outside. One of our long term goals is to own a lake house, so I’d probably be working on improvement my lake house or future primary residence. I want my future primary residence and lake house to be value-add investments…
6) Something that you have recently or thought about “burning your cash” on for time savings or an improvement in quality of life.
I’ve made the decision to forgo making money on Fridays – Fridays are Daddy day for me to spend with my one and half year old son. I give up a lot of income but it is great for the soul to spend a whole day with just me and my son.
7) Something that you changed your mind on? Our ego often gets in the way of greatness.
I changed my mind about real estate – I used to treat it as a completely passive investment – I now think of it as a business and this mindset has opened up new possibilities and has opened up some fruitful relationships with property managers, contractors, etc.
8) In this sellers market… what are you investing in? What should a someone who does not have a substantial level of cashflow yet be investing in?
Value-add (also known as BRRRR’s) single family and multi-family properties. Less competition and opportunity to force appreciation and preserve capital.
Someone with little cash flow should buy a house hack – buy a multi family property, live in one of the units and rent the others out.
8) Tony Robbins identifies two large concepts that we are continually struggling to gain perfection at: #1-Art of Fulfillment and #2-Science of Achievement. If you died tomorrow and I were to email this to your kids a couple decades later… this is what they would hear.
- What is your secret/hack for the “Science of Achievement?” Any secret habits to share? Morning or Nighttime ritual?
I talked about the morning routine that I try to do. I would say be strategic in everything you do and constantly be running if/then scenarios. Have backup plans for everything. Be constantly prepared to react to things beyond your control. For example what if rents drop 20%? What if we have another Great Recession? What if I have a health problem and can’t work?
- What is your secret/hack for the “Art of Fulfillment?” How you do contribute back?
I would say just to act with integrity and honesty in everything you do. People like dealing with people they like…it’s pretty simple. Treat people with respect both in business and your personal life.
9) Anything we missed and contact info if you would like anyone to get a hold of you. URL?
My website is www.realliferentals.com and I use it to track my monthly portfolio performance. I can be reached through the contact page on my website.