“The ABC’s of Real Estate Investing” by Ken McElroy is more of a bible than a book. It is the authority on how to start out in the rental real estate market. I am going to reference this book many times in the future. I think that it also has value for the smaller level investors as well. I own 3 homes and I still learned many different techniques to use during the home buying process. Not everyone is interested in the mega rental real estate market, however, I think most people can learn a lot from this book. Like the author says, “Running an apartment complex IS a business.” So even for budding entrepreneurs, there is value in this book, even if real estate is not your thing. With that, let’s get into my 5 takeaways:
1) “There is nothing wrong with having a goal that evolves over time unless you are changing your goal every time you hit a roadblock, that is avoidance.” Ken lets the reader know that they can start off small time in real estate. Maybe a duplex. However, when things get tough, don’t downgrade to a single-family home just because things get hard. In order to achieve our goals, we have to fight through the hard times.
2) “Achieving my goals meant I had to do four things really well: Communicate, plan, persevere, and stay focused”. These four items are important because they are the same four things you need to be successful in anything in life. For example, marriage, military, business, etc. These 4 things are the backbone to success.
3) Tell everyone your goals. Do not be afraid of your goals. Not only will telling people your goals assist you in staying on task, but you may also find someone who can point you in the right direction. The more people who know your goal, the more people you have that may be willing to assist you.
4) The market is more important than the property. This one I can definitely get behind. My second house was small and in a nice quiet neighborhood that was centrally located. The rent value and house value have sky-rocketed since 2017. It is the right size and in the correct location to make a great rental property. The market is hot.
5) “Places that have clearly defined personas are population draws almost as powerful as employment”. This again to know to be true. Being near the white sand beaches of Pensacola, Florida has shown me that location matters. There are tons of people that want to come to visit, rent, and buy here in Florida. It is a great location.
The book has many more lessons, including a step by step guide to buying rental property. The book is also clear: do not go at it alone. Building a team consisting of an attorney, broker, property manager, etc is just as important as the cost of the property. Rental property goes up in value as the income generated increases. So, the better you run the place, the more the place is worth. It is actually pretty awesome. I am definitely looking to buy a small 3-4 unit place, close to the beach. That would make for great retirement income. I will pull this book out again and again over the next few years.
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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