R
eal estate investing has long been a reliable source of passive income and wealth growth, driven by the increasing demand for housing and commercial properties. Ken McElroy, a successful investor and author, recently shared on his YouTube channel how he earned $1 million from each of his real estate ventures.

    McElroy's journey began as an onsite property manager, where he identified the potential of owning his own company to achieve his financial goals. He founded a property management business that eventually oversaw 4,000 units, generating between $50,000-$100,000 per month in net income despite high operational costs. This venture tapped into the growing market of millennials seeking passive income through real estate investments.

    McElroy's strategy involved combining properties to increase returns. He bought two adjacent buildings and merged their operations, saving $300,000 annually by consolidating management and marketing efforts. The streamlined operations added $5 million-$6 million in property value. This concept illustrates McElroy's philosophy of optimising net operating income to generate long-term wealth.

    McElroy also acquired a 156-unit property with an adjacent vacant lot, constructing 148 additional units and creating a 304-unit property worth $54 million with $10 million in equity. He installed washers and dryers at one of his properties, increasing tenant rents by $50-$75 per month and generating $153,000 annually.

    McElroy's other ventures include buying two apartment complexes in Las Vegas for $85.6 million, converting them into condos, and selling them individually for $171 million. He also launched an in-house renovation company, handling flooring, appliances, and paint for large apartment complexes, generating over $1 million in revenue by renovating 856 units.

    McElroy's business ventures demonstrate the importance of diversifying income streams, managing risk, and maintaining control over all aspects of property management. His strategies illustrate how property owners can maximise value and generate substantial profits in various markets.