What to Look For When Buying an Investment Property in a Housing Bubble

thank you hello and welcome to the Ken mcquarie show I'm your host danil here with Ken what's happening so this is pre-recorded because we are in Thailand and Bali right now celebrating our one year anniversary that's right yeah so we are having an amazing time and we'll let you guys know all the details when we get back we'll have picks and all that'll be fun so we're somewhere on a beach it's not a country song no yeah uh maybe I don't know but we what we will do is on the Ken McElroy official Instagram page I will be posting tons of stories of what we're doing so make sure to follow us and check it out that will be fun yeah make sure you guys hit the like button we love that it always helps us out and make sure to check out um our happy hours and webinars when we get back in November if you go to kenmcroy.com forward slash webinar you'll be able to see the webinars and comeback roy.com forward slash happy hours for the happy hours So today we're going to look for what you should look at when you're trying to buy during this housing bubble and it could be bursting so stay tuned first thing that we look for and we always look for is does the property cash flow Ken do you want to explain how people will know if a property cash flows or not what do you look for income minus expenses but Betty last week wanted to know you know how to break that down further on the expense side so obviously the income's easy it's just whatever the rent is but the expenses are going to be what can you break that down for her and a lot of people listening sure well first of all for a housing bubble I think what most people are concerned about in a housing bubble is equity if you think about it like you know we're at a housing bubble what does that mean for prices and so I think a lot of people if you're focused on Equity um you know uh it's gonna be okay as long as you're you have cash flow and I think that's what we're trying to say if you have cash flow you don't have to worry about the equity so right now obviously we have a lot of equity a lot of people have a lot of equity and a lot of the stuff they own and that could go down so but a lot of people associate their net worth with that even though it was you know fabricated and kind of fictitious it you know you don't actually have that Equity until you sell so um you know so the number one thing is of course cash flow income minus expenses and you know there are things that you can do so as as a company right now in our property management division I'm focusing on what we call our asset management division so how do you manage your property manager better even though I own the property management company you know it's got 250 people in it I think you know it it does need management so so how does our asset management division manage our property manager so this is actually something that you can and should focus on right now and and by the way maybe it's you maybe or maybe just managing our property manager but you you should be looking at like I know Danielle uh you had a property and your friend owned a property in the same neighborhood and the the rents with the pro you're managing yourself and the property manager was managing hers what wasn't there a big difference in the rest yeah there's I forget the number but yeah it was a big difference in the rent it was like five or six hundred dollars a month difference right so the property manager said that it was one thing and of course Daniel knew that it was another and so she told her friend who then uh managed the property manager said listen rents are a lot higher in this market so that's a form of asset management so the same thing on the expense side you know things can get really out of control um I know we you know you had a tenant that you know nickels and dimes you calls you all the time and you got a handyman going there a maintenance guy going there all the time so these are all little things and as we start to get into these uh you know tougher times you you know you need to really look at your utilities you need to look at your insurance costs you need to look at um you know your maintenance costs you need to look at your um your management costs or any other things like that your Capital expenses those are all those are those are those are going to be and should be very scrutinized now as we start to go into these rougher Waters absolutely and um if you want to just let people know because I think a lot of people listening don't understand the equation of cash flow so I think we really do need to address that okay and Jerry since you're going to be editing this later if you could just put it on the screen you have income which is obviously the rent and then what are the expenses can you break those down sure so first of all income is not just rent so first of all income is not just rent so income starts with rent but it could be other things it could be pet income it could be carport income it could be you know garages it could be storage it could be all kinds of little things you know you typically have your base rent and then you have other things so you might have location premiums and you know there's all these little things on the income side and and there are lots of ways to generate there's both the rent side and then there's the uh what we call the other income side so other income can come from month-to-month fees it can come from credit check fees and and late fees and all these kinds of things those are actually not rent even though it's income so you have all that category then on the expense side you have you know what does it cost for you to to run your wherever you live right now whether you're renting or owning you have all of that stuff you have your property taxes of course which you know you can challenge you can actually you know we just got property tax increases on most of our properties and some of them were challenging some of them were not you have your insurance costs which you can manipulate by higher deductibles and different kinds of coverages and then you have your expenses on your utilities so on utilities you have electric you have gas you have water you have trash you have you know all of those things sewer and those are all you know something that you can manage and then of course you have your maintenance costs which can also vary widely depending on the the age of your property so those are just some of the things basically what Ken is saying is you have your income which you always have to account for vacancy in your income so you can't assume that you're place is going to be rented 24 7 every single month what kind of vacancy do you usually look at when you're looking at a property so it depends on the market if you have one if you have a home and you have a vacancy you're 100 vacant if you have a four Plex and you have one vacant you're 25 vacant if you have a 10 Plex you have one vacant you have 10 vacant so just depends on the size of the property size of the asset but it also depends on the market and you know there are markets right now that are 100 occupied so you're going to fill that vacancy very quickly and then there are markets maybe on the edge of town that are going to be very hard to get renters at so it just depends on what property you have and where it is but generally you know if something's right in the middle of town it's a heavy strong strong Market you're going to have less than five percent vacant and if you're on the edge of town and you're having you know trouble getting renters out there and you have to advertise a lot you might be closer to 15 or 20 percent okay so that's good to know so use that you know in your income make sure you put the vacancy in there your annual income and then your expenses are going to be like kind of just said taxes Insurance utilities depending on you or the tenant is paying those maintenance cap X which is you know what you put away every month for big things right so like you need a new roof or you need you know a air conditioning unit so something like that you're putting a little bit of money away every month we usually recommend on a single family to put what a couple hundred bucks away every month yeah and then the HOA if applicable so if you get the income taking an account the vacancy minus all the expenses and it's cash flowing that's how you know you have a cash flowing asset and if you're managing yourself of course there's no cost but if you are using a third party then that has to be in there too and if it's a bigger property then you might even have some payroll costs as well but it just depends on the size absolutely so the second thing you have to look for when buying in a you know in a in a bubble is is this somewhere people actually want to live because sometimes it's very enticing to buy on the edge of town because it's cheaper yeah so this is showing up right now and I always like to say that people are voting with their checkbooks and their feet so in other words why are there so many people going to Arizona Texas and Florida you know you have to look at that objectively and those are the markets that are on fire right now and those are the markets that are seeing you know really high um price increases and the rents are going crazy Miami is the number one rental market in the country because it's so expensive there it's ridiculous how expensive it is for rent why is that you know so you have to look at those kinds of bubbles you have to look at those kinds of markets and will that continue to run or will it start to back off you know will they start to hit some affordability issues on the other side of that you have to look at markets that are that are going the other way that are losing people you know we're starting to see price reductions in homes we're starting to see rents flatten um you know if you dig down into the fine details you'll see there's all kinds of reasons there's safety issues of course there's weather issues there's work from home issues there's political issues with the way that those cities or counties or states are being handled so there's all that stuff and you know so it all just depends you know be careful of buying into a property bubble there's a lot of people that thought that Florida was in a bubble a year ago but it just continues to roll and um you know so who knows well we did see that in um you know Maricopa and Arizona for example so in you know 2008 everything was hot everything was on fire Maricopa was this up and coming area and you do have to be careful with up and coming areas when you're in a bubble because they are the first you know as prices start to go down things start to consolidate right so the outskirt areas get affected first and then you know everyone kind of Moves In so you want to be careful when you're when you're buying in a market like this that you're not buying in an unestablished area that's supposed to you know improve with time you really want to buy somewhere that's already really good yeah if you just Google because I did this this weekend and one of the learning videos has this in there is you know what are the what are the markets that are most at risk right now that's actually a really important thing to watch and why and and so you look at the ones that have run up really fast that might not have the infrastructure the demographics the employment the population growth all that stuff maybe they have some of that but um you know it's it's tentative you know when you start to hit these affordability issues then people start to rent and and then it starts to mess with the rental market and then then all of a sudden that little market is not affordable anymore and they start to look somewhere else and then it starts to hurt both the pricing on the new homes and on the rental side yep and the third thing you need to look for when buying a property in a bubble is can I support the property if there is a vacancy well that's the issue that's a reserve issue that's a cap capital uh issue you know as you guys know I talk about this a lot pre-pandemic uh was that three months and then when the government said you know nobody can go to work and uh and there's a rent moratorium you know we scrambled and we're like oh gosh do we have enough reserves you know and our and our tenants gonna pay so that's a little bit different but really not that different you know we were still faced with that so that's the way you should be thinking and and so for me we have six months reserves now that might seem a little excessive but the question is how long will you have a vacancy and how long can you cover it so so if you have a vacancy today and you're a thousand dollars negative a month then you got to determine how much you want in reserves just in case you have a vacancy and uh you know I think six months is a good number you know I'd be expected like a lot of you saw my video my tenant had to move out because she lost her job recently and so she was supposed to be in the unit until March of next year and then she had to break her lease and I had to get a new tenant in there and luckily I didn't really have a vacancy but I could have you know and so you know it's not just when people's lease is ending you need to worry about a vacancy it's while they're in the lease as well well you were lucky that you know the first the tenant contacted you and said hey I lost my job you had good communication with them that's huge they said uh you know uh and I need to move out during the lease and you said okay let me find somebody and thankfully you were able to it did take some work you did have to advertise you didn't have to show it there's a little bit of work around that but it ended up being a bit of a win-win it did right but you did uh when they moved you had to paint the place you had real expenses right I don't know exactly what you spent you know 500 or thousand dollars to turn the you unit again an expense unexpected because if the tenant would have stayed there you wouldn't had that so there's all these little things you know that come up when you're owning things um you know not just the vacancy itself absolutely and you know luckily she told me and we did have good communication but also you know she just couldn't pay the rent anymore so even if I couldn't have found someone she just didn't have any income coming in so you know it's even if she would have stayed with no income I still had no income coming in because she just didn't have any money to pay because she lost her job so during the pandemic we had we had we broke our our we had ten thousand tenants we broke them into three categories category one was we're still going to pay you and we're communicating category two was we want to pay you we're not sure how we're in financial stress um can you help and how do we work on this category three don't talk to us literally so you know so that's the category you got to work them worry about are they did they move out because if they moved out then you have a vacancy and they've moved out and then you have to turn the unit and there's some legal issues around that especially if they left their stuff there if they took everything that's considered a skip but then you still might have a bunch of Maintenance and then you got to get it back into the rental pool so all of those things are factors if you're a landlord you just got to always think about category three you know in your case you had a good relationship with your tenant they communicated with you really they were in category two yeah but in a lot of cases they're in category three where they're like you know I don't wanna it's nobody's business I'm I'm I'm leaving in the middle of the night or I'm moving out on a weekend or whatever and um you know this landlord this place is the last of my worries I'm I'm out of here right yep okay so you have all those things and those are real scenarios and um you know people go through what they're going through and you just have to you you just have to have a plan for all of those three things right and and those things become more real during harder economic times and you just need to make sure that you are in a position that if that happens to you that you are not scrambling like your tenant is that you're in a better position where you can support that vacancy for a few months while you get a new tenant in there right and if you look at you know one of the things that the FED is doing is raising rates right now so what does that mean they're trying to they're trying to move inflation down so they're also saying that the result of these higher rates is going to create unemployment to go up okay so this weekend I was I was looking at all this and it said right now we're at like a 3.7 unemployment if it goes to 4.4 guess how many people that is that move to unemployment hmm take a guess I have no clue one million oh that's right one million 1 million so one million the problem is that's a lot of people so what happens when unemployment goes up like that same issues they can't pay for their car payments they can't pay for their you know the electronics or the flat screen that they bought they can't pay their rent you know they you know they they start to um get more hurt financially so those are the kinds of things that you need to prepare for and as a landlord your job is to have reserves for that right you know there's no way you're going to be fully communicated to by your tenants um you know you might not even know them that well and so you know they're going through whatever they're going through and hopefully they communicate to you but they might not and the fourth thing you need to calculate if when you're buying in a housing bubble is will the property still cash flow if rents correct ten percent yeah so rent you know what we're talking about is income you know right now everybody's been reliant on these high growth rates on rent you know so what happens if rent contracts backwards and that's what you're talking about right yep so really how that shows up first is in vacancy you know so let's say you had a rental for fifteen hundred and somebody moves out if it's if you're trying to run it to 1500 and a lot of people have looked at it and it's still 1500 one month from now what are you gonna do you're going to lower it to 1300 because the goal you're trying to stop the bleeding right so that's what we're talking about so if you rent it for 1300 then you're 200 more a month less that's 2500 that could be your profit um hopefully not hopefully it's a little more than that but that's kind of the point right you just don't want to be so tight that you can't adjust the rent a little bit down and then be negative right right so these are all things that you got to watch and again it's gonna the Market's gonna dictate where your rents are so if somebody like in denial's case when her renter told her she couldn't she lost her job she had to move you found a renter within a couple weeks right yeah about three weeks okay so you were starting to get worried well it's just been the longest I had ever went without having much interest this is my point so imagine that thankfully it wasn't vacant right but if it was vacant you probably would have lowered it because I know you by the way yeah I was about to lower it anyways good point so you know as that draws on and as as you start to stress out and this one does about you know what's happening each day so those are the kinds of things that you you'll start to see later um you know and it could be a marketing issue could be amount of times you're showing it could be who's seeing it could be people don't know it's vacant whatever the case is you have to be prepared for filling that up and uh if the more showings you're gonna have the better off you're going to be able to test whether or not the rents are going down right you know if you guys are you know side note if you guys are show getting a lot of showings um that's good on the price maybe your presentation is wrong you're not really getting any showings then it very well could be your price or it could be marketing yeah yeah show your photos right exactly so you wanna obviously we're getting into marketing and presentation but um but those are important things yeah they are especially in time like this and then the last thing that you really need to be careful of when buying a housing bubble is will the bank even give you a loan for a property because it's not the time in this kind of Market to do any kind of hard money or adjustable right mortgages you really want solid fixed debt well the good part about that is the bank will decide so what I mean is again they're going to go to math period so they're going to look at how much does the property make you know is there a renter in there is there not a renter in there what's the history who's the manager all of those things what how are you operating these is there lots of cash flows or no cash flow the bank looks at something that a lot of people don't talk about and I did a video on this on YouTube it's it's called a debt service coverage so the debt service coverage is exactly that how much debt do I need to you know to and still have profit for the landlord so let's say you're looking at a let's say you know you've got a a couple thousand dollars of of uh noi or net operating income income minus expenses so the debt the bank's going to look at that they're going to look at how much cash flow you have before debt and they're going to tell you how much they can put on as far as debt so those are things that they're going to look at so not always you know they're going to look at that but they're also going to look at the um the value of the home they're going to do an appraisal and they're going to take a look at the loan to value so loan to values are starting to go down right now guys so all of that's going to start to happen so the banks are going to adjust based on the market and what they're willing to do and their risk the banks do not want to own real estate let's be clear on that yeah they're not in the business they want the collateral they want you to have lots of equity in case you default because that's how they get paid back so that's how it works so the banks are going to be super smart super diligent and they're going to be changing as the market continues to change and as rates go up things change right absolutely so next we're going to get to our Inner Circle questions our Inner Circle if you go to Ken's innercircle.com we have book clubs happy hours you can ask Ken questions it's great it's 30 bucks a month but we're going to get into it and Nancy has a very interesting question so Nancy says I think my tenants are selling drugs in my property because people keep going in and out at all hours that goes into the other income category what would you do I've had this a lot I hate to say it but um there's a bunch of things um the uh the easiest thing is just to get the the local PD involved uh and we've done that I've had properties where I've actually had to move in to a vacant unit uh you know there's surveillance uh you could take videos you could send it to the the detectives um basically you just want to bring a lot of attention to it you got to be careful um you know if if you have a multiple unit property and there's people coming in and out selling drugs obviously it's against the lease and all that kind of stuff trust me we all know this um but you need to get the authorities involved it's not something that um you know you want to handle the property management with too I know we had some friends you know where they had some young kids living there they're probably I don't know 21 22 I think they were selling some pot out of there and they just called their parents so I guess it depends too on that's true you know like you know if you want to take it there or you don't want to take it there but sometimes if you just give them a heads up like hey kind of have a feeling of what you're doing you know what I mean and then you want them you want some horror stories guys we've had we've had meth labs people use apartments for all kinds of stuff we've had literally meth labs where they've ruined the entire bathtub and we've had prostitution Rings we've had prostitutes we've had lots of different kinds of drugs um you know it it can really you know especially when you start to get into the bigger numbers we've had a fair amount of crime we've had people be arrested uh you know it's just nuts people have all kinds of interesting lives and and it is unfortunately the dark side of property management it has to be dealt with quickly we've had sex offenders move into properties that didn't register with the state and of course the entire property was up in arms as you would imagine uh with sex offenders you know nearby because they they flyer the property I said you know there's a sex offender living in this property so you know those are uh you know called Clues you know those are problems but really the bigger issues is um what's the ripple effect what's the consequence if you if it's not handled right yeah you can't ignore it yeah yeah and so uh if they're paying you uh in 20s you know that should be another clue no I'm just kidding so but you know these are things that happen people rent um a lot of times they rent from non-professional managed properties to do all kinds of stuff it's actually think about it if you're doing that kind of uh you know if you're going to sell drugs out of something you're gonna you're gonna find a place where you can do it where uh you have an absent landlord and not really uh High Property Management something uh you know but uh the best thing to do is uh contact the authorities yeah and I do think you should contact the authorities because Nancy what if they're just not selling drugs and they just have a lot of friends and they're in and out and now you've created this whole thing so let the police handle it they'll figure it out if they are if they're not and then if they're not then it'll just go by the wayside just like a domestic abuse call just call and say I think this is happening and make sure you have some videos and stuff and you can show them yep absolutely so Dave wants to know from the inner circle how do I know if I should sell my house when I move into a new one or rent it out so I think he's asking like math-wise like how does he know if it's better to sell it or better to rent it well you know I'm gonna I'm always super clear on this I I think you should accumulate real estate as you go so I mean denil did this exact same thing she she bought a first place found a renter moved to the next place bought uh then found a renter moved to the next place and so on right and that's how you know she was able to accumulate her properties so I strongly believe in this and um you know only you know your financial situation you know the the downside is if you need the equity from that first house to buy your second house I don't know the answer if you don't then um I would jam a renter in there try to cash for as much as you can and force yourself um to um uh you know keep that thing and grow you know the tenant's gonna pay off your loan and at some point when the rates go back down you'll be able to do a cash out refi which tax-free on the one that your primary residence today that you're you know you're going to rent at some point so that's the model that's that's my suggestion how about you yeah I mean I I agree with it I mean I really think that's one of the best things I ever did was accumulate real estate in that way it's enticing to think oh I could you know make you know 200 Grand on this you know but then what are you gonna do with it and if you roll it in your next house okay your mortgage is lower but maybe maybe but if you know you take the rental income and apply it towards your mortgage it might not be as different as you think yeah the other thing is you might be sitting on a pretty darn good loan you might have a really nice interest rate on that loan and that right now is an asset so if you have a an interest rate that's well below the market today I think that that loan becomes an asset so that's something you might not want to walk away from absolutely uh Jenny wants to know if they can do a should they do a six-month lease for a tenant yeah sure that's probably the minimum you know we usually do six through twelves I think that um you know it depends on where you are so if you're concerned about them moving out in their seventh month um you know there's a little more risk to you but on the other side of it if rents are going up then that gives more flexibility to you so if the if the rents in your Market are going up then a six month lease is probably not so bad um you know if you feel like rents are going down there might be more risk to you so it just depends but yes six month leases are fine um I have no issue with that yeah I've done that a few times you know people are in then they're out and there's more turnover costs for you but as long as you know you're collecting security deposit and any damages they're paying it's just a little more work for you but it's fine here's the other thing I and I'm I'm serious I we we do six month leases but rarely do people move out well that's the thing they always stay like they always say we're like ah I just want the minimum amount so it's like the people are afraid to commit like I don't want to commit to a 12 because I might be moving to California and then a year and a half later they're still in your place yeah so I that's why I'm not too worried about it uh typically we do sixes it gives us more flexibility if rates go up a hundred dollars and you can that's their risk now they're gonna be upset with you but if you just say listen I'll do a six month but if rates are up you know we might be looking at a rate increase and that might maybe that'll jump them to a nine or a 12. absolutely yeah and I've even done that I had somebody that wanted to move in right before summer which is a hard time in Phoenix and I let them do a four month lease because basically they want to do a three I made them do a four but that took me all through summer into a good time that's a really good um where it was a hot rental market in that time so I'm like well this is a benefit for me when you say hot rental market you mean somewhere in Phoenix yeah yeah well summer of Phoenix Is Not Great like a lot of people don't like to move that's what I thought you meant so it kind kind of like push them to the fall which is a good rental market so that was a win-win for me because I knew I was going to have trouble finding somebody to move at that time yeah so that really worked and I've done that before on extensions for runners too where their lease has been up and I said they want to do months a month and I'll say well keep your rent the same if you'll commit to a four month and then just get me through the summer yeah so you guys can't believe the population growth difference from say November till about April here in Arizona it's beyond belief like everyone think about what the weather's like in October November typically a lot of people will come either before you know right or at the end of October some people wait through the holidays and then come first part of January but it's crazy in Phoenix so all you were trying to do was bridge that Gap to that point where we knew that you knew there was gonna be a lot more people here so that's very common uh you know same thing on the other end sometimes you have really places that have incredible Summers like I was talking to our friends we had dinner with they bought a place in Port of our ARA and he was telling me there's like a three or four month period where it just rains all the time right where they don't want to even go so you know these are very common as long as you understand them uh you know so he would obviously you know just try to jam somebody in there for that period of time if he could for a lower amount knowing that um you know the summer might be better yeah and I've even done for people like 13 month leases like if their lease is going to be up mid-December you don't want that right so instead of doing a 12 month you ask them if they want to do a 13 months because you know you're going to have a hard time when they eventually move out running something right before the holidays that's a good point so you just have to look at that like always look at when the when they're you know what's best for you not just them though yeah so you want to look at when that lease expires so you know alternatively if in Phoenix if you have a lease expiring in June you're probably going to have a little harder time to rent in July and August because it's so hot so you know that's another big factor which is exactly what denial was thinking about when she when she put somebody in there for four months absolutely um our next Inner Circle question comes from Joe so this one's a little tricky I think that you know we've all had situations like this so he wants to buy a home from a family member because they're selling their home and he wants to buy it but they're not agreeing on the price so what do you recommend that he does pass yeah yeah I know that's kind of harsh but that's the best negotiation you can do um you know because you know what will happen is you're at a point right now it's family where you know unless you're unreasonable you could be actually you could be the one that's unreasonable you think it's severely uh discounted or should be and they don't um you know it's just a it's a fight over cash really so uh just move on uh it you know it family in my opinion is much more important than a real estate transaction absolutely absolutely yeah and I guess if you really want it you could try to price match an offer so say List It you know I'll price match what you get for it trust me the the right here's how I would handle it I'm gonna pass I'm gonna go out and find something else um Good Luck and you know go ahead and sell it for whatever you think it's worth I'm gonna go do my own thing uh and then that is the because you know the the market will always do the right thing the market doesn't give a like you know what I mean whatever the house will sell for what it sells for you might be right and they might be right but um you know just move on yep so Cara wants to know she's been hearing a lot about adus or additional dwelling units on properties she has a large yard and wants to know and with no HOA and wants to know if an Adu is acceptable who where would she start that profit that's a good point so this is a this is a um you have to get a permit to build it so you're going to find out a lot in the city or the county that you're in um awesome that you don't have a HOA that's huge but typically there are some there's zoning and there's all kinds of things that are required don't forget this is a you got sewer you got electrical you got Plumbing you know you got extra parking you got extra traffic there's a bunch of stuff involved and you can't just uh add units I have a lot of friends doing adus so this is a good idea um but there you got to take a look at the at the local laws and uh it will you'll quickly find out um but you're gonna it'll have to be permitted um and um this is a great way for you to generate additional income absolutely so Eric from Inner Circle has a question he said hey hi Ken I did a market analysis for a city I'm interested in investing in here's what I learned the country where the city is located has a 0.4 percent vacancy rate I'm sorry the county has a point four percent vacancy rate 2.2 percent unemployment B rating and crime net positive population migration is there any more information needed to determine if this is a good Market to invest in first of all those are four really good things so those are all good metrics um the only the only thing that you might want to consider is how large is it right is it 20 000 people or 200 000 people or two million people so um the reason why that's important is if it's 200 000 people um you know and you got one big employer like we have a we have a community down in a small town called Sierra Vista Arizona where there's a border patrol that's based and um you know uh border patrol is largely depending on the funding of the U.S government and so we've watched the border patrol grow and shrink and grow and Shrink over time and therefore people coming and going and so it does affect the community same thing with the military base uh same thing with a large employer moving in or moving out those are all things that can affect smaller communities and you won't feel that impact as much in a in a larger one so that's the only other thing those are really good ones I like to also look at schools because I think a lot of people especially if they have families that's one of their big things they're you know what school district am I going to be in what school district will my kids be in um those are things that they look at those are big ones actually sometimes a school district Will trump the amount they'll pay in rent so in other words they might stretch a little bit if it's the number one or in the top five school districts in an area or state or whatever so those are all big factors yeah we've had that you know the guy that rented a home that we own you know he had to stay in a certain school district for his son yeah so he was specifically you know boxed into this area so his son didn't have to change schools yeah yeah so he was moving he was divorced if I remember and um uh had a great job great yeah actually I think he owned his own business but the point was is that he didn't want to pull his son he moved not far from his existing home and he didn't want to pull his son out of the school so these are real things that happen yeah um and so um School District's a big one absolutely well thank you guys for watching we'll be back in a couple weeks make sure to go to Ken McElroy official and we will be posting um a whole bunch of Adventures we're going to be doing electric bike tours through rice paddies and we're doing a Thai cooking class and a midnight food tour in Bangkok so there's a whole bunch of fun stuff this is the first I've heard about all of it I know I did all the planning but if you uh have any good recommendations make sure to DM us too because we'll be checking them because we'll be like I said in Bali Phuket and Bangkok all right guys all right see you next week [Music]

Channel: Ken McElroy

Views: 16,355

Keywords: Rich Dad, Entrepreneurship, Investing, Personal Development, Get Wealthy, Earn Wealth, Ken McElroy, Entrepreneur, Rich Dad Advisor, Success, Business, Coaching, Real Estate, Real Estate Entrepreneur, Real Estate Investing, Lifestyle Business, Hustle, Ken McElroy Housing, Ken McElroy Real Estate, MC Companies, Real Estate Investment, Investing in real estate, Federal Reserve, Interest Rates, U.S. Economy, housing market 2022 forecast, housing market crash, housing market 2022

Id: TXIatiQ9VeI

Length: 40min 16sec (2416 seconds)

Published: Mon Oct 10 2022