Episode Overview

Theme:
This episode dives deep into house hacking as the quickest path into real estate investing, told through the firsthand journey of Alex Murillo. Host Joe Jensen discusses how Alex accumulated 15 doors by the age of 26, starting with house hacks, leveraging primary residence loans, and ultimately expanding into out-of-state multi-family properties. The episode is packed with tactical insights, stories of both wins and costly missteps, and actionable advice for beginners—particularly younger aspiring investors.

Key Discussion Points & Insights

1. Discovery and Early Mindset Shift

• Alex’s Introduction to Real Estate (01:00–03:30):
  • Stumbled into real estate investing while working night shifts in college and binge-watching BiggerPockets/Brandon Turner videos.
  • Became inspired by the “financial independence, retire early” (FIRE) movement.
  • Concerned about investing time and money into a traditional career he might not love, Alex saw real estate as a more sustainable skill and long-term asset.
  • “Every dollar you put in… is at least becoming a dollar in equity or two or three dollars in equity.” (00:00, Joe)

2. Choosing Knowledge Investments Over Temporary Trades

• Real Estate as a Lifelong Skill (04:16–06:05):
  • Joe stresses that expertise in real estate never goes to waste, unlike industry-specific skills.
  • “No one’s gonna be like, ‘I wish I didn’t know as much about real estate.’ … It’s a knowledge acquisition worth investing in.” (05:28, Joe)

3. Becoming an Agent and Proximity to Mentorship

• Building Skills & Mentors (07:00–10:00):
  • Alex got his agent’s license at 23, after seeing firsthand the wealth-building potential of real estate.
  • He joined a real estate team led by a mentor who owned 30 paid-off properties—a proximity that inspired Alex to level up (“...the proximity made me...kind of put pressure on me, I guess. I was like, dang, I felt the need to do more…” 08:48, Alex).

4. House Hacking 101: Strategy, Mindset, and Execution

• The Real Tactic (10:24–17:00):
  • Alex and his wife consistently used 5% down primary residence loans, moved in, rented other bedrooms (or units), then repeated.
  • Initial example: Rented out rooms to friends; even lived in a living room for a period while house-hopping to the next deal.
  • Key buying criteria: Only bought homes where projected rent would cover at least 1.25× the mortgage (12:45, Alex).
  • “I try to teach this to my first-time homebuyer clients…but most of the time it just doesn’t make sense to people.” (14:16, Alex)

5. From Singles to Multifamily and Out-of-State Investing

• Scaling Up (15:42–21:00):
  • Early homes were single-family with bedrooms or basement units rented; then switched to multi-family configurations.
  • Used 1031 exchange to sell first house (strong appreciation, $150k equity) and buy eight doors in Cincinnati, OH (two duplexes, one fourplex).
  • Chose the market through personal connections and market research on affordability/growth.

6. Hard Lessons: Managing Out-Of-State Properties

• The Unfiltered Truth (21:59–28:52):
  • Dealt with nightmare tenants, squatters, property manager issues, unexpected renovation costs.
  • Fired three property managers in OH before finding a reliable one: “I just assumed…all property managers were equal, which is not the case.” (27:06, Alex)
  • Renovation costs for each unit were $10k–$15k—unexpected after the 1031 exchange because that money can’t be used for repairs.
  • “I always wonder when people post ‘$0 down’ deals…how much is it gonna cost now that you own the property?” (28:55, Alex)

7. Long-Term Thinking, Risks, and Managing Fear

• Persistence Pays (30:33–34:11):
  • Renovations created $160k–$185k in new equity in the fourplex (bought at $265k; expected value post-rehab ~$425–450k).
  • Encourages holding properties long enough for appreciation and renovations to pay off: “If…they could just realize…those are gonna last…they’d be thankful they kept it.” (33:26, Alex)

8. Mental Shifts and ‘Gamification’ of Wealth

• Collecting Assets & Rep/Pivot Mindsets (39:01–45:47):
  • Real estate investing frames money and property as a “game of collecting playing pieces.”
  • The importance of “just taking action”—and building confidence through reps, not getting stuck in overanalyzing or waiting.
  • "You want more pieces in the game...houses or equity or whatever it is, because then you can stay in and collect more and more and more..." (39:42, Joe)
  • Encouragement to destigmatize buying property and to think bigger.

9. The Power of Partnerships

• Collaboration Overgoing Solo Fears (43:16–45:19):
  • Alex’s current flip succeeded because he was willing to split profits for support: “It just makes so much more sense to ask for help. I wish I had more help. Everybody does.” (44:20, Alex)
  • Reassurance to new investors: experience, reps, and partners beat doing nothing due to fear of “giving up” part of a deal.

Notable Quotes & Memorable Moments

• On Real Estate Knowledge:
  "No one’s gonna be like, ‘I wish I didn’t know as much about real estate.’… It’s a knowledge acquisition worth investing in."
  — Joe (05:28)

• On Buying Smart:
  "I'm not going to buy that house even though it's beautiful and I qualify and it'd be dope. It's not going to be self-sufficient when I leave."
  — Joe (13:25)

• On Managing Out-of-State:
  "In Ohio, I've fired, I think, three property managers... I just assumed...all property managers were equal, which is not the case."
  — Alex (27:06)

• On Unexpected Rehab Costs:
  "I bought these houses with basically no money out of pocket because it came from the 1031 exchange... Now I've inherited this thing that does have expenses."
  — Alex (28:52)

• On Long-Term Value:
  "Every dollar you put in… is at least becoming a dollar in equity or two or three dollars in equity within your case here."
  — Joe (00:00 and 31:59)

• On Getting Started:
  "If you have people in your corner that are supporting it, then it makes it way easier..."
  — Alex (43:16)

Important Timestamps

• [01:00] Alex’s origin story; introduction to real estate investing
• [06:05] Value of lifelong real estate knowledge
• [07:00] Becoming a real estate agent, mentorship, importance of proximity
• [10:24] The mechanics and mindset of house hacking
• [12:45] Buy-box criteria: rent-to-mortgage ratio (1.25X)
• [15:42] Transitioning from room rentals to separated units/multifamily
• [18:36] Selling the first house, 1031 exchange into eight Ohio units
• [21:59] All the "dirty" details: squatters, bad managers, rehab realities
• [28:55] Hidden costs of “$0 down” deals
• [31:59] Building forced equity and banking on the long-term payback
• [39:01] Thinking bigger; buying more, gamifying real estate
• [43:16] Partnerships for scaling and support

Final Four: Rapid-Fire Personal Insights

• Dream Deal:
  Pay off primary residence; own properties free and clear due to a dislike of debt (46:26).

• Pivotal Book(s):

  • Rich Dad Poor Dad by Robert Kiyosaki
  • Set for Life by Scott Trench (47:06)

• Biggest Mistake:
  Not vetting the property manager—the most expensive lesson (47:39).

• Enjoying Life:
  Pickleball, backpacking, hiking, spending time with wife and dogs (48:11).

Closing Thoughts

• Alex encourages listeners to reach out; both he and Joe highlight the abundance mentality within the real estate community (48:31–49:47).
• Key message: Don’t wait to get started, and don’t be afraid to ask for help—every action, even “messy” ones, compounds into options, equity, and experience.