As an 11-year real estate agent, it's no surprise that the majority of my net worth and investments are held in real estate.
Here is the podcast:
Today, I share the numbers that I've seen from my three cash flow producing real estate properties.
I talk about my investing strategy and the actual cash out of pocket to obtain these properties. Then I dive into the P&L and share how much each of these properties cash flowed last year and over the last rolling 12 months.
Kyle Handy 0:06
Alright guys, Hey, take number two sorry about that the software was getting all a little bit messed up today. But that being said, I am coming to you guys live now it looks like it's working just right on Facebook and on YouTube, on my channel, Kyle Handy. And so if you're if you're checking us out for the first time, welcome. But today, what I'm going to be sharing is something that it came up as a topic over the weekend. And it was something I've never kind of talked about yet, at least in this much detail. And it's how much do rental homes earn? This is something that, you know, a friend of mine who's looking to kind of invest some money he had come to me and asked, hey, you know, I'm getting some money here pretty soon. You know, how much should I expect to have to spend how much should I expect to be able to make all this good stuff and You know, in general, I mean, I've, you know, I kind of track all this stuff every single month, but I hadn't really, you know, done the full analysis of it ever since I've acquired these properties. And for those of you that may not know, kind of, you know, I do own three rental properties, in addition to our personal home. And I picked up all three of these properties between about 2016 and 2017. And so I've owned them for about two and a half to three years now. And each property has a little bit different story, as far as you know, how much work I put into it, as far as renovating and all that kind of stuff. But, but yeah, and now I looked back the last two and a half years, and I can share with you guys exactly what it is how much I've put into the properties, how much my down payment was, how much it cost to renovate, how much I have an equity now in that property. I know how much cash flow that I'm earning from these rental properties. And so I thought that'd be a pretty cool topic, even though I know that Not necessarily real estate sales related every now and then I do like to kind of come to you guys with just information on what you can do with your your savings and the money you're making from your real estate sales business. And I love the idea of rental real estate. I mean, I think it's a great opportunity for us to, you know, get into get involved in something that we know as realtors, you know, we kind of have our ears to the ground a little bit more than the average person. So you know, when you get those opportunities to you know, buy a property, because you hear about something, maybe it's a listing you were going to go take what you realize, like, hey, this might be an opportunity to, you know, accomplish both people's goals, the sellers goals and your goals. And it makes it a win win for a just kind of an investment opportunity for you. That's kind of what happened for all three of these properties for me. And so it's not something that I actively do. I wouldn't consider myself a real estate investor. I know that you know that. That term gets thrown around a lot. And there truly are people that just, you know, that's all they do. They work in the investment side of the business, for real estate. But you know, I'm just a real estate agent. And like I say, whenever something comes across my desk, and when I, whenever I have the money to be able to capitalize on the opportunity, I do go and choose to add those properties to my portfolio. So today, that's what I'm going to be talking about. Let's see here. Yeah, so it looks like we are still live. He's got a check to make sure that it's working here. It looks like it's skipping some frames. So I don't know, guys, if you're watching this, and this is messing up. Go ahead. And you know, give me some kind of a comment feedback, let me know because it doesn't tell me, it looks like it's going live. But it doesn't tell me if it's messing up. If it's missing up guys. And this is already the second time I'm going to keep going. And if I just have to re record a video and post it up, I will certainly do so because I know that this is good information that a lot of people want to hear about. And so I want to make sure that you can get it the best way possible. So if it's not working, hey, don't worry about it, you can jump off the live stream, I'll go back and take a look at it. And I'll post up the actual recording of it, which will be in good quality. And I'll make sure that you get this information. So with that being said, let me go ahead, I'm going to jump right into it. I want to kind of look, make sure that it looks like at least
Kyle Handy 4:22
on your Facebook, we've got about four people on YouTube for people. So it's a little lower. So I don't know, maybe something is messing up. But anyways, I'm going to share these numbers with you guys. And feel free to put in the comments, your thoughts and questions about it. But today, so I have three properties, I'm going to call them one of them is sunrise. The other one is that and the other one is windward, right, those are the three streets that these properties are on. And so I'll give you kind of the backstory about them all and then I'm gonna jump over into my computer, and I'm going to share my profit and loss statements from QuickBooks that I've done over the last year. Couple years so you can see how much that they've actually brought in. So the first one sunrise Creek, this was a property that I got from a family member and you know kind of a distressed sale the property needed a lot of rehab needed a lot of work. You know, in fact it needed about you know, 30 grand or so 30 $35,000 in repairs, it did need foundation and you need some plumbing work. The entire home needed to be completely gutted and redone as far as you know, paint and flooring, all of that good stuff, bathrooms kitchen, and so but it's a small house, so it wasn't you know, a ton of work I'd say the house is probably 1200 square feet or so. But this one here, it cost me $72,000 to purchase. I had $3,000 as far as closing costs that I was able to get thrown into the deal, just to help out you know, keeping my cash to close as low as possible. And then it costs like I said about $30,000 in repairs and renovations. Altogether on into that one for right at about $100,000. You take the 72 minus 3000, add the 30,000. I'm into it for about $100,000. And I put 20% down on it. So you know, I think I was out of pocket on the 20% down probably about 15,000 and then the 30,000 in repair, so out of pocket about $45,000 on that property, okay, my loan though, as far as where I'm at because I did do a kind of like a cash out refinance at 100,000. So I was able to pull 20 grand back out of it. So if you're following the numbers here, 20 grand out of the 45 that I was able to get back out of it. So I'm out of pocket now. $25,000, but my loan went up to it's at $76,000. As of today. However, that property, the actual market value on it today is roughly about $130,000 So I've got about $53,000 in equity still sitting in it. So even when I did that cash out refinance, I did it a lot earlier, the property values have gone up significantly, I could probably do another cash out refinance, if I wanted to, and pull some more of that equity out to be even less out of pocket, maybe even zero out of pocket. For those of you don't, that don't know what a cash out refinance is, it's basically like, you know, this case, if I wanted to go and cash out refinance on it today, I could take that say it does appraise for 130, which I imagine it would, I can pull up to about an 80% loan to value on that property. So if I own if I owe 76,000 on my current loan, and I can pull up to 80% out, sometimes it's about 75%. Depends on what banks you're going with and all that kind of stuff. But let's just say I can pull 80% that means on 130 I would have to keep $26,000 in equity in there. But I could take a loan out for 104 right, so then my loan amount would go up my payment on that loan would go up. But I'd be able to pull out the difference between 104 and $76,000. So it's almost about 30,000 bucks, that I'd be able to pull out from that property, which if I did that, again, I still am about $25,000 out of pocket on it right now, that would completely zero out as far as what I owe on Earth, what is as far as what I've put out on that property. So I go from, you know, 25,000 to actually having $5,000 from that property that I've been given from that property. Plus, I'm still going to have some equity in there because I had to keep that 20% equity into the property. And I'm still going to have a cash flowing asset. And I'll get into the cash flows here later, once I jumped into my QuickBooks, but this is just strictly a, you know, kind of a cash analysis right now showing you how much money I had to put out into these properties and how much money I've made cash on cash. As of today, so
Kyle Handy 9:02
the next property let's talk about is fast drive. This one was a pretty easy property. It's a three, two, it was owned by an older couple, they just needed to sell it, they didn't really want to do showings. So I gave them a good cash offer on it, you know, something fair for the both of us. It didn't need any work at all to really, you know, go in and put into it. And I purchased the property for $119,200 I was able to earn $6,000 in closing costs from the property and I put that into the deal. And then I also had my on this one, I got a $7,000 Real Estate commission from it. So work that into the deal. So really, if you look at that, it's almost like I paid about 105106 for the property. I did put 20% down on the home and about $20,000 out of pocket when you factor in, you know, getting my $7,000 in real estate commissions back so $20,000 out of pocket on that one. And again, I'm $25,000 out of pocket on sunrise Creek. And so if you look at those two, that's that's kind of where I'm at on that one. Now that today is worth about, I would say fache is probably worth closer to about 150 or so 155 maybe just depends on the, the appraisal, right? And so if that's 155, my loan on it currently is about $90,000. So I've got about $65,000 tied up in equity on that one. Which, again, same thing there. If I wanted to, I could refinance, you know, do a cash out, refinance on it, and pull out let's just say, you know, on that one, if it was 155, if I can pull out up to 80%, that would be I have to keep $30,000 into that one. So 125 I could pull out probably another $35,000 in in equity from that property. I haven't done that. In fact, It is something I am looking at. So I mean, it may do that here soon, just because then I can take that money that I pull out from those properties. And I can reinvest those into additional properties. And it's kind of the beautiful thing about this, there's actually a strategy that real estate investors do called the burst strategy. It's where you buy, you rehab the property, and then you refinance the property, get your money out, and then you repeat the process, right? So be are, right, it's just you buy a property that is distressed and need some work, you put some equity into the property by rehabbing it and making it you know, the value goes up on the property, then you go out and refinance the property because now the property is worth more money. So you can get the money that you put into a back and then you go out and do it over and over and over again. So in this case, you know, same thing on that I could do that, you know, go out, pull the money out from it, because I do have that equity in the property. But as of today, I have not done that. So I still have roughly about $20,000 out of pocket on that property. I just have a lot more in equity on that one. Now on the last property windward way, so this one here cost me $63,000. It did need a extensive rehab, we went through, redid the whole thing got it, it, it didn't need foundation work. So that was kind of a nice thing. But it, it was it was pretty bad. So I mean, I still ended up spending about $30,000 on that one to rehab it. It's a little bit larger property. It's about 14 1500 square feet, a three to kind of on the west side of San Antonio. And, and so basically on that one though, I was able to work a deal with a private investor, to where basically, it was like a cash purchase and I kind of secured my financing through this private investor. And so on that one out of pocket. The only thing that I was out of pocket Was my repairs and renovations? And then up front, I paid two points. And so it was about 1200 bucks or so. And and that was it. And so really, you know, I'm in into that one for about $30,000 a little over. And if we look at that one, if we take a look, what I ended up doing is I've already done a cash out refinance on that one. So, you know, once I was done rehabbing the property and kind of fixing it up, I went and you know, got traditional financing on it.
Kyle Handy 13:29
So the way that you actually can look at it, it's almost like if you've heard the term hard money loan, that's basically what you can do for some of these properties that need rehabbing. You go out you find somebody that's going to finance you, it's probably going to be at a high interest rate. But if you know that you're going to complete the property, it's gonna be worth a lot more in a few months. It's usually not that big of a deal. And so basically, that's what we did over here. We're basically we, you know, bought the property for 63,000. I put 30 grand into it. So now I'm into it for 93,000. The property's worth about 115 or so hundred and 20. And so I did traditional financing 20% down, I had to keep about $20,000 in equity into the property. And so basically what that did is it kind of cleared out all of the hard money loan that I took out the 60,000. Plus, it pretty much washed out the out of pocket expense that I had to purchase the property. So that $30,000 that I put in investing into the rehab, I got all of that back out as well. So this one I didn't actually take any money, like I didn't make money from doing that, that cash out refinance, but it made me whole again. So I'm basically into that property for zero at this point in time after I've done that cash out refinance. And so that being said, my new loan on that property as of today is about $97,000. The property again is worth somewhere between 115 to $120,000. So I've got about maybe $17,000 in equity tied up in that one And so if we look at that, and we add all of those up as far as you know, the equity that I've got in sunrise fache and windward, as of today is roughly about $130,000 in equity tied up in those properties. If we look out look at as far as the cash out of pocket for those properties. If you'll remember on sunrise Creek, I got about 25,000 out of pocket stash, I've got about 20,000 out of pocket. In one word, I've got zero out of pocket because I already did the cash out refinance. So I've got about $45,000 out of pocket cash expense from from, you know, money that I've invested that I don't have today is $45,000. That being said, this is all just in the last two and a half to three years. If you think about that. I also have now like it said $130,000 in equity in these properties, so $45,000 out of pocket expense. And I've got if I wanted to sell all three of these properties today. I could have $130,000 minus some fees, you know, sell selling fees, and I'll pay, you know, title conditions and stuff like that. But even still, that's a pretty decent investment, just on the cash on cash be cash on cash basis. Now, you also got to keep in mind these were properties that I fixed up I rehabbed. And so, you know, realistically, you know, some of that most of that money that I've made is because of the flip side of it, right. But what I want to get into next and share with you is because I actually kept all three of these properties, I kept them as rental properties. I didn't just flip them. I've also been making cash flow on all of these properties. So I'm going to share that with you here next. Alright, so here we go. So we're going to jump over here. Let's go ahead and dive right into the computer here. All right, I'm going to pull up my QuickBooks go Alright, so here's Quick Books. Let's see 2017. So we're going to go 2018 Using 2017 to see how much I invested into these properties, but by 2018, these properties were done. And they were rented out. So you can see here, this is each one, right? sunrise Creek windward way and fache Drive. All right, and this is what I made by the end of the year on each of the three different properties. So you can tell here, here's the rental income that had come in when word I don't think was a full year of rental because I don't think it rented out until about April, March, April of 2018. So that's a little bit less this was a full year for sunrise. This was a full year for thatch, that rents for probably the most out of the three. And so what you're going to see here is I've got the different breakdowns as far as the categories down here, move my video out of the way here. So you can see there all right. So yeah, so you
Kyle Handy 18:02
can see here that on sunrise Creek, you know, all you got to pay your insurance on it, interest paid. So this is what I've paid an interest on each of those properties for the year. This was before I had actually moved windward way over to do the cash out refinance are still paying a higher interest rate at this point in time. And if we look over here, maintenance, that was still again because when word was completed in 2018, so there was more that is kind of going into the maintenance side there as far as just to fix it up getting it ready for rental, that probably wouldn't be that much in a normal year. But then we also got management fees. This is what I pay for the property manager to manage these properties. I truly am a very, you know, keep it passive type of investment. If these are passive investments for me, I want them to stay that way. I don't want to have to go out and manage it and worry about tenants. collecting rent and, you know, scheduling contractors to go out and work it. This is truly what it is to have a passive investment. I mean, I essentially have hired a property management company to manage the three properties. And I honestly am very hands off, I just get a check each month. And, you know, as far as maintenance, if it's over, you know, a few hundred dollars, they send me an email, or they'll call me and say, Hey, this is what's going on, do you authorize it? If it's less than that, like a small thing, then they just take care of it and build me for it. So it has been very passive, I have not had to worry about a single thing over these two and a half, three years, and I had to worry about any evictions either knock on wood. So, you know, I'm very thankful for that. I would say that these properties are all probably kind of, you know, classy, maybe fache would be a Class B kind of a property. Maybe not even that, you know, but they're not like they're very, you know, dilapidated bad neighborhoods. There. You know, good neighborhoods, solid neighborhoods. They're not going to be, you know, just from the price of these properties mean, they're all between about 100 to 150,000. So I mean, we're not talking like, you know, super high end. here in San Antonio, our average price point is about $225,000. So they're, you know, below the city average. But we also still have properties that are, you know, 60,000 to 100,000. And those I would say, are getting a little bit more, you know, tougher as far as a rental would go, they probably can cash flow a little bit higher if you can get those, but I kind of like as far as my strategy, kind of going somewhere a little bit more towards the middle end, where I'm going to get more appreciation, maybe not quite as high of cash flow. But I don't have to worry too much about you know, the types of tenants and all that kind of stuff that I'm going to be having to deal with on them. So if you can see that, you know, that's kind of what you can see as far as the story that it's telling here, but, and I've got my management fees, I've got property taxes because these property obviously got a Pay your property taxes on that is the highest because that one is the one that is valued by bear County, the highest. These ones are actually pretty good because these two were the ones that needed the most amount of work windward way in sunrise Creek. And so the county, you know, appraise them very low. And they haven't adjusted it yet. So who knows. But then as far as utilities, I think windward I had to keep the utilities on for a little while until we got a tenant and as we were kind of doing some of the rehab. So you can kind of see here, you know, as far as what I cash flowed in 2018 from these properties, the average though like, you know, sunrise Creek was 5350 $800 for the year, that was 40 $500 for the year. And when we're like I say just because it was a little different. I still had that outstanding hard money loan. I still had some maintenance and there was a little bit different but I would imagine this would have been probably close to about five thousand dollars or so for the year as well. So you can see there that's, you know, I finished out 2018 with the $10,000 that I had made and that's just on the cash flow right like that's not taking into account equity or anything like that it's pure cash flow on three properties with as you know now $45,000 cash out of pocket, so not a bad return if you ask me just from one year in now the next that I'm going to show you and I do a report as of so today is 1111 2019. So let's go year over year 1111 2018 There we go. So we'll get a full report here.
Kyle Handy 22:42
I'll show you what that looks like. So Alright, so this one again is this because now we've got the the cash out refinance in here, plus, kind of some some extra stuff that I had to do maintenance wise, windward was a mess at the beginning of this year, there was a big electrical issue that I had to take care of, we had to completely redo pretty much the entire electrical for that house. And so you can see here that obviously affected that quite a bit where I stood there, but if we look at sunrise Creek, I think I had like, maybe two months, maybe a month and a half or so worth a vacancy. I think that's the other thing that people need to take into account is vacancy. A lot of times, you know, I've spoken to people and they think, Oh, well, I'll just rent my property. As long as it covers my rent, or, you know, covers my mortgage, then it's, then it's a decent investment, right? Like, maybe you own a property, and you don't want to sell it right now. And you're thinking, well, I'll just rent it for a few years and as long as it covers my mortgage, you know, then I should be okay. Well, I think there's a lot of things that hopefully this will will share and show as far as you know, extra expenses that people don't account for. Typically what I like to do is my rule of thumb is Fact right about 10% of vacancy. So let me just give you a scenario. Let's say you can rent your house out for $2,000. Let's say your mortgage is 1800 dollars on the surface, you might be like, Oh, man, you know, that's, you know, no brainer, right? Like, I can rent my property out for this much. My mortgage is less than it. So, you know, let's do it. Right? Well, if you factor in, you probably aren't going to get a full 365 days of rent. Like if you have to put your property up for rent, even if it rents out right away. I mean, there's still time that it takes for you know, people to get approved and you know, for it to be marketed and stage. So there's going to be time where the house is vacant, most likely, right? And so usually I factor about 10% for vacancy. Which you know, on a $2,000 property, that means you're taking $200 a month out, right? Because if you figure if if you just don't rent it even for one month, that's $2,000 less than you're going to get so that is almost 10% for your vacancy. If it goes two months, well then you're more than 10% so I stick to 10% for very I can see for maintenance, I factor in about 10% as well. Now if it's a new home or something that you know is relatively, you know, well cared for, like maybe just remodeled or something, you might be able to go 5% but if it's just something that's like a home and you know it, you know that it needs maintenance now and you've been doing maintenance to it, you know, regularly, but it's going to continually need it. You might keep that at closer to 10% for your maintenance factors as well. And then you have something called capital expenditures. And luckily, I haven't had to worry about any capital expenditures for my properties just yet. I guess technically, you could probably consider that big electrical deal that I had to do on windward way maybe a capital expenditure, but typically what a capital expenditure is is something outside of maintenance, it's something that you know the home is just going to need work like eventually you know, the roof right like a big item is going to need to be replaced or the AC is going to be needing to be replaced if you keep properties long enough. 10 1520 years. This stuff has happens, it doesn't happen every single month, but you got to factor in a percentage of each of that rent coming in to be able to pay for those expenses when the time comes, right? So if you have to spend $7,000 on a new roof, like you take that out of the capital expenditure budget, and so, you know, again, most of the time I factor in between about five to 10% for capital expenditure. And then the last one is property fees, management fees. And it's the same thing, they're usually about 10% in for management fees. So if we look at that from just that general rule of thumb, right, you know, if we look at, like, you know, for instance, here 30 $434,000 is what I collected in rent from the three properties year over year. And my management fees are about 30 $700. So again, about 10%, right? maintenance on them, about 40 $800. Right, and now you could probably say some of that was because of that capital expenditure. Majority of it was that I had to pay out on there. But But anyways, interest I would say you're going to take that, you know, once you factor in your mortgage amount, you know, that's obviously covered in your mortgage. So don't worry too much about that. But then it's the insurance. Same thing that's kind of part of your mortgage, property taxes, part of your mortgage, utilities. That's not a huge one. But yeah, so if you're looking at your 10% rules on each of those, that's pretty accurate, right? Like you can see there 10% there, you know, probably 10% there. The only thing is, and that's it, that's 10% split between capital expenditures and maintenance. So again, that's probably closer to five spot somewhere between five and 10%. So but really, if you look at that, just between maintenance, and oh, and that's the other thing is like
Kyle Handy 27:43
the 10% is already taken off the top here because if I would have added up all of these, if I would have gotten paid out 12 months of the year, for rental income, this would have been about 10% higher I probably would have had another 30 $500 you know, maybe even $4,000 into this number this rental income, but because I had vacancy, I didn't get all the rent income that I could have had, right? So the 10% was already out of this. So if you factor in 10%, vacancy 10%, for property management 10%, let's just say combined for capital expenditures and maintenance. And then 10%, for property management, that's about 40% that you have to take out of the rent that you're going to receive from that property, right? So if you would have gotten $2,000 take out about $100 when you're just factoring this in, because that's real money, it's going to come, you know, cost you money, maybe you're not going to get property management, well, then it's your time, right? Like what is your time worth? And so you got to factor all of that stuff in there. And so at 2000 bucks, it's actually really like 1200 dollars, so is what you're earning. Now, if your mortgage is less than, you know, 1200 dollars, then great, you know, now it's a cash flowing asset. If your mortgage is 1800 dollars, well, you got to realize like you're gonna probably be negative cash flow on property. And so I, personally, I think as a general rule of thumb, something that's a good way to look at it is if you can rent a property for 1% of whatever it is that you paid for that home, then it may be a worthwhile investment. This is just a general rule of thumb. Now, if you can do more than that, like they actually have something called the 2% rule, that is a great, great option, you know, opportunity to get some cash flow. But usually that I see that on mostly, like, kind of lower, you know, and investments like as far as $60,000 homes, you know, yes, they're going to cash flow a lot, but they're probably not going to appreciate all that much. So, like, what I'm looking for is a home that say, you know, cost me $110,000, but I can rent it for 1295, right? 1300 bucks. On the surface. That's, that's probably like where I like to stick to. If you know, a lot of times I'll get somebody that's got a $400,000 home, and it's going to rent for 20 $800. Well, maybe their mortgage is 20 $800 or whatnot, but it Now that you see the extra costs that come out of it, it may not be worth it. The other thing too is, you know, you got to factor this and it may not even be maintenance, right, like say you're going to rent the property for a couple of years, just so you can get some more equity in the property. Yes, that's, you know, that is a potentially good strategy that might work, you know, if we kind of look at it, and, you know, we look at the numbers here, when we go back to switch over to my Sony came here. So, if we look at the numbers, you know, sometimes that could work, but most of the time when you're that far off, like if you're in a $400,000 home, and you know, it rents for 20 hundred bucks, that's, well, under that 1% rule, you're not even close. And so I typically in that case, would say hey, you know, sell that $400,000 home, you know, and let's go find you three, you know, hundred and $30,000 homes, right because those $330,000 homes, let's just say we can rent each one of those for 13 1400 dollars. Now you're bringing in, you know, almost $4,000 a month in rent, maybe even above versus 20 $100 in rent off of one property. And so, so in general, like I say, you know, you just want to kind of like, think about that 1% rule, and where you're at on that spectrum, you want to factor in all of those additional expenses, like I just showed you, as far as you know, for the cash flow side of it. And once you've done that, you know, and you've taken all that into account, then that's really when you can kind of decide if not only if it's a if it's a property that is a worthwhile investment, or if your current property that you're thinking about renting is actually a good idea or not. So anyways, I hope that those kind of gives you some insight as to you know, I covered quite a bit all just in a half hour, but you know, a couple different strategies that people can do for rental real estate. I gave you you know, some exact scenarios as far as cash on cash, and like, how much can be earned, especially when you're doing some kind of flip sides, you know, doing doing the flip aspect as well and rehabbing a property, you can obviously make some good money doing that. And then as far as cash flow goes, you can kind of see, you know, in this kind of scenario, what I factored in what I've seen over the lifespan of my properties, is I average about $300 per month per property that I currently own in cash flow. So it's about $1,000 a month, you know, just shy of it. And that's where you saw, you know, I was making about 10 to $12,000 per year from those three properties that I've got. And if you think about that,
Kyle Handy 32:40
you know, let's just kind of take a analysis into the numbers if I've got $45,000 invested, and I'm making $10,000 you know, cash flow every single year on that property. I mean, just the return my cash on cash return is you know, is amazing, you know, that's 25% just about there's not a whole lot of investments you You can go out there and get 25% return on your investment. In addition to that, I'm also getting the benefits of tax benefits. You know, I can write off a ton, right, like through all of this. And, and so I can earn the income, right off a lot of, you know, depreciation on my properties, I can write off all of the maintenance and property management fees, to write off all sorts of things to where almost, you know, I own space zero on taxes from this income that I'm earning from these properties. And, but, and then the last one is I'm also making money through appreciation, right? Like the properties are appreciating, the tenant is paying down my debt, as far as the loan goes on the property. And so there's all sorts of different avenues that that we're making money on, but even just the cash flow side of it, I think is so important. Now, I'm not saying every property is going to cash flow at 25%. Like what I'm doing cash on cash, but at the same point, you know, you know, that's kind of one of those things to that. I mean, my Situations a little different because I rehab that forced some equity into them. And so I was able to get my money back out. So it doesn't show as much cash on cash. But I think that you know, that strategy exists and there's not that opportunity in very many other investments. So that's why if you're going to my friend that that was asking me that question. I hope that you'll watch this video back at some point and it'll all make sense to you. But that being said, Guys, if this video was a bit confusing, because I know there was a ton of numbers out there, don't hesitate reach out to me I'd love to share it. This is actually a huge passion of mine. I love rental real estate. And you know, just the cash flow and kind of the, the wealth that you can start to build through it. And so if you got questions, put them in the comments message me and I'd be happy to help guys. But anyways, hope that this was a great little training for you guys on Veterans Day for any of the veterans out there watching. Really thank you for your service and appreciate all that you do and all that you've done for our country. And I hope that you have a one full day and I will see you guys next week. Take care. Bye bye