Rental Income Podcast With Dan Lane Step-by-Step: How He Went From Zero To 10 Rentals (And Where He Got The Money) With Derek Harris (Ep 550)
Dec 2, 2025
Derek Harris, a real estate investor in Tyler, Texas, built a robust 10-door rental portfolio over five years. He shares his innovative financing strategies, including using COVID 401(k) withdrawals and flips to kickstart his journey. Derek discusses his step-by-step approach to acquisitions and valuable lessons from extensive renovations. He breaks down cash flow management, the nuances of DSCR loans, and his strategy for buying properties. With insightful tips on finding unique deals, he sheds light on navigating the Texas rental market.
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Started With 401(k) Withdrawal Flip
- Derek used COVID-era 401(k) withdrawal to fund his first flip and startup capital.
- He pulled $88,000, bought a $60,000 house, rehabbed and sold it for $134,000, netting about $30,000 profit.
Bought Cash Then Recovered Funds
- Derek bought a three-bed rental for $115,000 in cash and kept long-term tenants in place.
- He later refinanced that property to pull the cash back out for future purchases.
Bought Two Homes Across The Street
- Derek bought two neighboring single-family homes for $85,000 each and flipped one while holding the other.
- He used cash and 15% down DSCR financing to acquire both as part of scaling.