
Welcome back to the Real Estate Investing School Podcast! Today, we're thrilled to feature another investor local to Maui, Tony Franks. Introducing our special guest, Tony "Duplex" Franks, a shining example of a lifestyle investor. Using his earnings...
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A
The sky's the limit if you open up your mind to what's possible. And I, I am on such the low scale of what people are capable of doing, but even the little bit of effort that I've put in has changed my life dramatically.
B
What's up, guys? Welcome back to the Real Estate Investing School podcast. This is another Real Deal episode. I'm your host, Brody Fossett, and. And we're coming at you live from Maui. So I have a guest here in person, which is different. Like, we're not used to this. This is usually like via Zoom, but you're. You're here, Mr. Tony Duplex Franks. So is that your real middle name, Duplex?
A
Yeah, Duplex. I legally changed it to Tony Duplex Franks.
B
If you can get the Instagram handle, then automatically you get the name change.
A
Exactly. That's. I think that's what discussion was cool.
B
Why, wait, why is your. Why is your Instagram handle Tony Duplex?
A
Well, because all I want to buy is duplexes. I just absolutely love duplexes.
B
Why?
A
Well, they. Well, that's a great question. The reality is. The reality is just the first. The first purchase I made was a duplex, and it changed. It changed my whole life, buying my first duplex. And I just also thought Tony something was important. And Tony Duplex just kind of has a nice ring to it. Someone called me Tony two Doors the other day, and I liked that, too.
B
Oh, yeah, that's like two step, but two doors. Okay.
A
And then someone else said Tony 2K just to be more excited about my real estate future. But we're Tony Duplex for now.
B
All right. Nice. I like it. I like it. No, I. I think that's great, man. And it was funny. I was telling you. I was asked someone, you're. I was like, what's Tony's last name? And they're like, duplex, because that's just how they know you. So that's awesome. But speaking of duplexes, speaking of your first duplex, we're going to talk about that today. For you guys that are joining us for the first time, second time, third time. This is a Real Deal series where we basically just talk about one deal with the whole purpose of how you can learn today from Tony, like what he did to go out and buy real estate, change his future. You heard it from him. It changed his life. Right. So we're going to dive into that. But make sure you're pulling these things out, like these little nuggets, looking at it from a standpoint of like, okay, if Tony did this, can I do it? How can I do it? How does this apply to me? Not just awesome, Tony's cool, he did this cool deal. But how can I go and take what I learned today and apply it to my life? So with that being said, dude, you tell me a little about this deal. Let's just take kind of like a zoom out view. Give us like a 30,000 foot view approach to it really quick. Give us, give us the basic rundown and then we'll dive deep, deeper into how you found it, how you funded it, and how you forced it.
A
Yeah, absolutely. Yeah. If anybody can pick up what I did and do it, I absolutely highly recommend it. Buying my first property absolutely changed my life. And, and the, the moment that I decided that I was gonna buy a property, it was cool. It was pretty short from the time I decided I was going to buy a property to the time I found this first, first deal. And yeah, if you could, if you could follow what I did, you would move forward in real estate as fast as you could.
B
That's awesome, dude. And we were kind of talking about it briefly, like before we started recording, but you basically found Rich dad poured out on the shelf. You read it in a day, and then you found, you looked online for other real estate books. Maybe, maybe go through that really quick.
A
Yeah, so I had an opportunity. I had a couple of weeks off work to, to just be. Just to relax. And I read Rich Dad, Poor dad in a day. And it was at a time where I wanted to figure out how to make passive income because I was a software engineer working really hard, mind melting work every day. And I was like, I got to figure out a better way to make money because I, I want to have time back in my life because I want to live well while I'm here, and I want to leave this place a better place than what I found. And so I read Rich Dad, Poor dad really quickly. And all I learned from that book was buy assets, not liabilities. And it's deeply ingrained in my head now, and it changed everything. But then I scoured the Internet trying to find another book on real estate, and I stumbled upon Brandon Turner's the Book on Real Estate Investment. And I read that in two days. And as soon as I finished that book, I knew exactly what to do. I knew exactly how to buy my first deal and I knew exactly what to look for. And so I ended up going to a reunion on Maui. And somehow I just bumped into Brandon Turner right after finishing his book and got to meet him and tell him that, hey, I'm gonna start on this thing. And then he was like, hey, good luck, and we connected on Instagram. But then I went back out to Colorado, and I just immediately started digging into the market, trying to find my first deal.
B
It was like a week later, right?
A
Something about a week later, literally. Yeah. I finished his book. Couple days later, I was in Maui, met him, and then I was right back to Colorado right after that reunion and started hunting.
B
That's awesome, man. I love that. It's. It's crazy how it all kind of comes full circle that way. And, like, when you're ready, you're ready, like, hey, let's make this thing happen. And there's. It's. It's interesting hearing that side of it, like, when you talk about it, because I know so many people that are on the flip side of it where they. They've learned so much, they've read so many books, and they've taken so much time, but they just haven't taken action. And so, I mean, applaud you for that, dude. Just learning and being like, let's go do this.
A
Yeah, I appreciate it. And I mean, no, I don't want to just keep being a fanboy. Brandon Turner. But it. Reading his book felt like I was talking to a friend, someone I could relate with really well. And he just. Anybody who reads that book, the book on rental property investing, book on real estate investment. I should really learn the actual name of the book because it changed my life.
B
Yeah, I think it's a book on rental property investing. It's so funny you say that because, like, I feel like Rich Dad, Poor Dad's always recommended. That's. That's my go to recommendation for anybody that's like, real estate investing 101, because he does such a good job at breaking down, like, all these different strategies, whereas, like, Rich dad poor. That's more of the concept, right?
A
Absolutely. I mean, the concept, the. Your mindset changed my. Where I was thinking. And then that's what led me to the real technical book on how to do it. And the thing is, you just have to do it. I've talked to a bunch of people that have seen my success in a short period of time, and they're like, oh, I want that so bad. And I'm like, well, all you need to do is read this one book. And I've given that book to many people and offered it up to so many others, and just. I have not had any of those people actually be Willing to read an entire book and you just don't want it that bad.
B
Yeah. Yeah, man, that's so true. So the real question is, for everybody that's listening wants to know, is Brandon Turner as cool in real life as he is on Instagram?
A
Absolutely. Okay. He's great. Nice. He's super cool guy. What you see is what you get with Brandon, and it translates into his books. Yeah, he's way goofier, though. He's kind of nerdy, but he actually is. But he's also low key cool in that way.
B
He actually is. Yeah. I give him a hard time about that all the time. Just like, dude, you're. Are you really that cool? You know, I'm just kidding. No, it's fun to. It's fun to make fun of him, especially his throwback pictures. You know, you're like, okay, yo, back.
A
In the day, we're not that tight. I don't bring up those pictures, but I have seen them.
B
No, it's awesome, dude. And. And you're not fanboying at all. I think, like, Brandon's really ch. I mean, that's. Dude, that's really what got me into real estate. You know, for the most part at least, that's what escalated. A lot of it. Because I listened to so many hours of just hearing him talk and. And it was cool. Like, I was on his. His Better Life podcast last week. It just aired, episode 35, I think, and it was just awesome. It was just a surreal moment where I'm like, dude, I listened to, like, hours and hours and hours and hours and hours and hours. Just like, to. You get to know this person, you're like, oh, I resonate with this guy. Like, I've learned so much from him. And so it was cool, like, you know, becoming friends with him and then eventually being on. On his podcast was. Was way. It was just kind of like this cool, full circle surreal moment for me.
A
But that's awesome. Well, I'm having that moment right now because I was on your knock doors to own doors, and now I'm sitting here in front of you, man. So I'm blessed.
B
Thanks for having me, dude. Yes, man. And that's. We were talking about it, I think, just the other week, and it is crazy how it's kind of come full circle, but you're a stud.
A
Thank you.
B
I want. I want to talk about this first deal that you did. So obviously we know you kind of just jumped full into it and you didn't know a lot about real estate beforehand. You read These books you met Brandon, you're like, hey, I'm going to go do this thing. And then you actually went and did it. So tell us about this deal that you did. Were you looking for a duplex right off the bat? Did you house hack it and live in one of the units? Tell us about it.
A
Absolutely. So reading the book, I knew my, my move was going to be a house hack because I had the salary to get a primary residence at a good, I had a low money down type of situation. And so I just wanted to find the best house hack I possibly could. And I didn't know if I wanted to do private rooms. That seemed like too many moving pieces for me. I didn't want to go too high and too high in the units just because it was my first deal. And I was just. I'm actually a super risk averse person and I have an incredible amount of debt, but I'm pretty risk averse. So I was like, what's the best way to live in a, live in a unit and make money in. In while doing that? And so duplex just made sense to me. And so I looked, I looked both in Maryland, where I'm from Frederick, Maryland, and in Colorado Springs where I was snowboarding at the time for a place that would work that, that I could live in and cash flow at the same time. So I just, on Redfin, Redfin was my go to at that, at that point and looked for anything that I could see cash flowing while I lived in it. And duplexes just came up as, as an option for that.
B
Cool. Awesome. So you got that. And tell us about the duplex. Was it?
A
Yeah.
B
So how many, how many bedrooms, bathrooms?
A
So it's, I mean I was scouring anything and I was making, I was making offers on and anything I could find that I thought would cash flow with me living in it. But this particular duplex was a one one in the front one and a one one in the back. Like 450 square feet in the front. 550 square feet in the back.
B
Okay.
A
Tiny little thing. But as soon as I, I had walked so many other homes that I had made offers on and it was like 80,000 over asking, 50 over asking, 30 over asking. And I was getting beat out every single deal I was trying to make.
B
This is during COVID right?
A
Yeah, this was. Yeah, right in the thick of COVID Right in the middle of 21. Yeah, yeah. And it was, it was a wild, it was a, it was a wild time to try to get Started in real estate. I mean for me, I just like, I'm, I'm never going to find a home that I'm going to win.
B
Yeah.
A
And I'm, I'm trying to go 50 over asking.
B
Yeah.
A
Yeah, it was a while.
B
What was the purchase price on this?
A
So the purchase price was 330 duplex in a great area of Colorado Springs, kind of a gentrifying area of Colorado Springs. And it was right next to my favorite brewery and my favorite coffee shop. So I felt really good about that.
B
That's what did it.
A
That was big. That was a big factor for sure. But as soon as I walked into this particular duplex, I just knew that it was going to be min. I, I just had a sense that this was going to be my first purchase.
B
Yeah.
A
And I talked to my realtor, I was like, we gotta win this one. Whatever it takes, we're gonna win this one. Because I. This is it.
B
Yeah.
A
I just had such a solid feeling about it.
B
That's cool, man. So, so just kind of go over the numbers really quick. What did you, I'm assuming you lived in one of the rooms. What did you put, What'd you put down? Or one of the units, What'd you put down? And then what did you rent the other unit for? What was your mortgage?
A
Yep. So I'm going to try to get to all that. But I do want to say one story about the offer, please. So I offered. So it was at 3:30 and I, I offered 335 with an escalation up to 380.
B
Okay.
A
I was just not going to lose this. I mean it was way, I mean it was way.
B
Explain to people really quick what an escalation clause is.
A
So basically it's, it's something that you can use to say, hey, this is what I'd like to purchase the property for. But if you get bids that push your. Push me out of it, I can go all the way up to a particular number. And that's a, that was my 50 or so over asking escalation clause. And it's basically the, my absolute highest number I could, like I could do. And so I put that in. And the day before they had to. The day, the night before they had to make a decision on who they were going to take. I got a call from my lender and my lender said, hey, I know everybody that's involved in this deal. I know the realtor, I know the seller, I know the buyer. And you got pushed all the way up to your number. But because of the relationship, they'll give it to you if you. If you're willing to do five more. And I was like, I looked at the numbers and it still worked, but it was painful because I didn't want to do that.
B
Yeah.
A
But I was like, hey, let's just do it. And then the next morning, I get a call from my realtor and my lender, who called me and said, tony, you won't believe this, but for whatever reason, they're just going to give it to you at five over asking. And they just let go of the other offer that pushed me all the way up.
B
Wow.
A
And I have no idea why that happened. But my only piece of advice is if you're getting something like this, use local people who know the market really well and who are really well connected. Because I think it was pretty much just the relationships I made that made me more of a viable buyer than the other people.
B
And that was like, difference of what, 40 grand or something?
A
Like the grand. Yeah.
B
Yeah.
A
It changed the game for me and it boosted my cash flow out the wazoo.
B
That's cool, man. Yeah. And there's a lot of interesting things around that too, right. People like, oh, don't use a realtor or do this, whatever. But like, they're. There's so many times like that where just going with the expert saves you so much money in so many different little ways with negotiation and different things like that.
A
Absolutely.
B
That's cool. So what. Cool story there. So you got the property. What kind of financing did you do on it? Did you have a job at the time? Did you.
A
Yep. So I had a job. I was able to, you know, leverage my salary to get a really good rate, and just everything was perfect in regards to how I was able to finance it. I probably would have changed it a little bit now that I know a little bit more about real estate, but I did an FHA loan. I think I did 5% down and at like a 2.75 interest rate, which is really low. So that's been nice to hold on to. I've. Since I've turned it into a conventional loan and a little bit worse of a. A little bit worse of a rate. But I wanted to be able to use the FHA product again.
B
Yeah. Cool, man. So. So you live there for. How. How long were you there for? And. And did it. You still have it today? Like, does it cash flow? How is it get some equity to depreciate?
A
Yeah, absolutely. I mean, all of the above. Everything. Everything positive that could happen with a property has my, my cash on cash has been incredible in that unit. I just put so little into it, and it's made me so much money month over month that it just lit me up for real estate in the future. But yeah, so I lived in the front unit, fully renovated the back unit, actually turned the back unit into a short term rental right out the gate.
B
Oh, cool.
A
And as soon as I listed it on short term on Airbnb, within 30 minutes, it was booked for the weekend. I had to rush to go put salt and pepper in there before the first tenant showed up, but it booked every night for six months from that point. And I was cash flowing at like $4,000 over my. Over my mortgage.
B
Wow.
A
And then I just, my eyes just got wide and I was like, well, God, this is, this is where it's at, dude.
B
I actually love that. I love that strategy. Just like, if we break it all down, just the simplicity of buy a duplex, owner occupy it, right. House hack it, but then go Airbnb the other unit and you, you like, I think they're. Anybody can make so much money just if they take that. Hey, I'm looking for a property in an area that's going to do well as an Airbnb that I can house hack or owner occupy. Put a low amount down, even one of the units and like, it's just, dude, that pencils so well.
A
It's a life changing formula.
B
Yeah, it's crazy.
A
It's.
B
It's crazy. It's like. And then, but then there's so many people out there that are struggling to find cash flowing real estate and you're like, dude, there's so many ways to go and do it. Right.
A
For sure. It's just depending what kind of work you're willing to put in and, and yeah, what you're willing to do and what you're willing to sacrifice to get to the. What you're looking for.
B
Yeah, that's awesome.
A
Yeah.
B
So. So then when you moved out or even to like this to today, do you rent both of those out separately on Airbnb? Is that how you have it set up?
A
Yeah. So as soon as I found out what you could do, um, and I, you know, I followed all the primary residence laws and, and how long you have to be in a place before you can rent it out, and I did all of that. Um, but yeah, I eventually turned them both into Airbnb vacation rental properties, and they did fantastic. There was a owner occupied change in the permitting, so I just moved them to 30 days or more just recently. And they're still, I'm still cash flowing at a crazy rate.
B
Cool.
A
Yeah, so I'm a big believer in short term rental, midterm rental to make things work in, in, in a cash flow circumstance.
B
Yeah.
A
Because for me, cash flow is, is really important just for my own life goals.
B
Yeah.
A
And I'm really happy about the way that all of my units have appreciated as well. But I am passionate about finding the most cash flow through the least amount of deals possible.
B
Yeah, I love that, man. That's, that's cool. And that's obviously like, why you live in Maui, you know, which is crazy because absolutely, you're this single dud.
A
Not for long. Not for long.
B
I hope not for long. Anybody listening? Search Tony Duplex.
A
Tony underscore Duplex.
B
And see for yourself if you would like to live off passive income in Hawaii and live the dream.
A
So there you go.
B
But no, but on, on the real, like it's, it's legit, right? Like, I mean, not to get too off topic, but like, you've been helping out a ton. Just volunteering the last like months with all the Maui Fire stuff and like, the people can't do that, you know, at least not long term like that. And you haven't been worried about work, you haven't worried about. It's like, oh, I'll figure it out. Because I'm, I'm making passive income through real estate.
A
So I'm a huge proponent in living your best life as quickly as you can because you're not promised tomorrow. And so I am blessed to have put in a lot of really hard work in a short amount of time and then got back to living the type of lifestyle I want to live while still being able to move forward professionally. And then, yeah, with the, with the situation on West Maui, to be able to stop working completely and to still be saving money while supporting the west side on a full time basis has been one of the biggest honors of my life.
B
Dude, that's so cool, man. And you never know, right? You never know, like, what the future holds. And it's like if you didn't make those decisions early on, if you didn't sacrifice, you know, hey, I'm gonna be smart and invest this money and be disciplined and build up my passive income or get into real estate, then you wouldn't have had the opportunity to help when people needed it the most, you know?
A
Absolutely, bro. I mean, you're speaking my language so completely.
B
You're speaking mine, dude. Let's go dream big fast right there. Like, I love, I love how you said, like, living your best life, like, as fast as you can because tomorrow is not promised. And it's like, it's one thing. And I think this is, this is why, like, I love the concept of dreaming bigger, faster is you never know, obviously, like when today, your last day is coming.
A
Exactly.
B
But on top of that, it's like we sell ourselves short, you know, like, what if you're able to live your dream lifestyle tomorrow that in your mind it'll take 10 years to get there. And it's like if there is a way or a path that could get you there. 10 years faster, dude, you just bought yourself 10 years of time and so just did that concept of like, hey, how can I, how can I go big, but how can I do it fast? Like, there's, there's got to be a way to do it faster than, than most people are doing it. Right, Sure.
A
I couldn't agree with that more. And yeah, the sky's the limit if you open up your mind to what's possible. And, and I, I am on such the low scale of what people are capable of doing, but even the little bit of effort that I've put in has changed my life dramatically.
B
If someone wants to connect with you, kind of follow up with you, see if you're dating material. Is that, is that best spot Instagram?
A
Yeah. Tony underscore Duplex. However, there's a girl on my horizon right now.
B
Oh, okay. We got she. She might be listening to this.
A
She will be.
B
She knows I'm on the brownie points right now, but.
A
Tony underscore Duplex. You definitely follow me either way. I'd love to be your friend. And yeah, this whole, this whole life is all about relationships. So happy to be your friend.
B
Love it, dude. Love it. Well, appreciate you coming on and we'll get you on the full length podcast and dive into your full story. But sure, thanks for sharing, sharing your real deal with us and you guys that are listening. Take what you learned here. Go find yourself a duplex. Do it. Let's go.
A
Thank you.
Episode 126: REAL DEAL – The Power of Your First Duplex
Date: January 25, 2024
Host: Brody Fosseett
Guest: Tony "Duplex" Franks
This episode features Tony Franks, aka "Tony Duplex," sharing the transformative story of his first duplex purchase and how it set him on a new financial life path. Geared for aspiring real estate investors, Tony’s story highlights practical steps, mindset shifts, and actionable strategies for breaking into the world of house hacking and cash-flow-focused investing—emphasizing how “just doing it” can be truly life-changing.
Tony Franks:
Brody Fosseett:
Tony’s duplex story reveals the power of focused, decisive action, real estate literacy, and leveraging strategic house hacks for fast-tracked financial freedom. The episode is a call to break out of learning inertia, take calculated risks, and use real estate as a vehicle for designing your best life sooner than you think.
Connect with Tony:
Instagram: @tony_duplex
Action Step for Listeners:
Take what you learned—go find a duplex, house hack it, and use smart rental strategies to accelerate your path to passive income and personal freedom.