One House a Year: Your Simple 10-Year Path to Financial Flexibility

Want a roadmap to build time-leveraged cash flow and long-term wealth without the complexity of traditional business ventures?

Dustin Heiner is back on the show to share his proven strategy: buy one profitable investment property per year for 10 years.

It might sound easier said than done, but Dustin retired early from the cash flow of his 30+ rental properties and now helps others replicate his success at MasterPassiveIncome.com.

Dustin treats real estate as an “income building” business, not speculation. He’s built systems that generate consistent monthly cash flow while building equity — and his 16-year-old daughter just bought her first property using these same strategies.

(Check out Dustin’s free real estate investing starter course and learn more about his proven systems.)

Tune in to Episode 691 of the Side Hustle Show to learn:

How to find cash-flowing properties in today’s market
The exact team-building process that prevents landlord nightmares
Creative financing options that require minimal down payments

Table of Contents show

The 10-Year Financial Freedom Blueprint

Dustin’s strategy is refreshingly simple: stop thinking like an investor, start thinking like an income builder.

Don’t hope for appreciation or gambling on market timing. Focus on properties that generate positive cash flow from day one.

Here’s how it works:

Year 1: Buy one property that cash flows $300/month
Year 10: Own 10 properties generating $3,000-$5,000/month in passive income

But the real magic happens through what Dustin calls the “six ways you make money” in real estate:

Monthly cash flow – Immediate passive income
Forced appreciation – Buying below market value and renovating
Market appreciation – Properties double in value every 15 years historically (Dustin’s comment)
Mortgage paydown – Tenants pay off your loan principal
Tax advantages – Depreciation and expense deductions
Equity recycling – Using built equity to fund additional purchases

A single $150,000 property with $15,000 down can generate over $650,000 in total returns over 30 years — and that’s without accounting for rent increases.

Finding Cash Flow in an “Unaffordable” Market

“Housing is unaffordable everywhere!” you might think. But Dustin’s daughter just bought a 3-bedroom, 2-bath house in Ohio for $125,000 that rents for $1,350/month — beating the coveted 1% rule.

The secret is to get outside the coasts.

Dustin and his students are finding deals in:

Ohio (Cleveland, Canton, Akron areas)
Indiana
Tennessee (outside Memphis)
Alabama
Texas (select markets)

Search criteria for beginners:

3 bedrooms, 2 baths
1,200-1,600 square feet
$85,000-$150,000 purchase price
Target areas with good rental inventory

Use Redfin, Zillow, or Trulia to filter properties, but don’t get overwhelmed by the options. Instead, follow Dustin’s systematic approach.

The Business-Building System That Prevents Disasters

Here’s where most new landlords fail: they buy first, then scramble to find management. Dustin flips this completely.

Build your business BEFORE buying properties.

Step 1: Find Your Property Manager First

Interview 6 different companies
Call each one 3 times (Monday, Wednesday, Friday)
Test their responsiveness — if they don’t call back within 24-48 hours before they have your money, that’s a red flag
Ask the key question: “Will you manage this specific property?”

Step 2: Secure Financing Options

Instead of traditional mortgages based on your income, use DSCR loans (Debt Service Coverage Ratio).

These commercial loans are based on the property’s rental income, not your personal income — perfect for young investors or those with variable income.

Dustin’s 16-year-old daughter qualified because the property’s $1,350 rent easily covered the mortgage, taxes, and insurance with $300+ left over for cash flow.

Step 3: Build Your Expert Network

Inspectors to evaluate property condition
Contractors for renovations and repairs
Mortgage brokers specializing in investment properties
Real estate agents (tip: work with the listing agent for better deal flow)

Pro tip: Have multiple team members cross-check each other’s work. Don’t just trust one person’s assessment.

Creative Financing Strategies

“I don’t have enough money for a down payment!”

Dustin has 18 different financing methods, but here are the most accessible:

DSCR Loans

10-25% down payment
Based on property income, not personal income
Higher interest rates but ultimate flexibility

FHA House Hacking

3.5% down payment
Live in one unit of a duplex/triplex
Rent out other units to cover mortgage
Move out after one year, keep as rental

Equity Recycling

Once you have equity built up, use cash-out refinancing to fund additional purchases. Dustin recently pulled $550,000 from six Ohio properties (tax-free) to invest in apartment complexes.

The Turnkey Option: Pros and Cons

What are turnkey properties? Companies buy distressed properties, renovate them, find tenants, and sell them to investors at a premium.

The downsides:

You miss out on forced appreciation (they capture the equity)
Property management quality varies wildly
Higher purchase price

The upsides:

Lower expected capital expense reserves needed for 5+ years (new roof, HVAC, etc.)
Better tenant quality (fully renovated properties)
Faster entry for busy professionals

Dustin’s recommendation: Akron Turnkey for beginners (mention you heard about them from Master Passive Income for a discount).

But if you have the time and want maximum returns, buy distressed properties and manage the renovation yourself.

Marketing Yourself: From Zero to Deal Flow

Start with your network, but don’t stop there. Let everyone know you’re buying investment properties:

Wholesalers – Investors who find deals and sell contracts
Other investors – Often have too many deals
Property managers – See opportunities first
Title companies – Connected to all real estate activity

Position yourself as a serious buyer, not a tire-kicker. Having your financing and team in place proves you can close quickly.

What Breaks Landlords (And How to Avoid It)

Roadblock #1: Buying the wrong property in the wrong area

Solution: Build your team first, especially property management. If they won’t manage it, don’t buy it.

Roadblock #2: Becoming a “mom and pop” operation

Solution: Implement systems from day one. Rent due on the 1st, late on the 4th, eviction notice on the 7th. No exceptions, no emotions.

Roadblock #3: Not scaling properly

Solution: Hire property management, use technology, and focus on being the business owner, not the operator.

“I hate it when my rent’s late. So… I treat everybody the exact same,” Dustin shared.

The Real Estate Market: Bubble or Opportunity?

Commercial real estate (apartments, office buildings): Definitely in bubble territory. Overleveraged syndications are struggling with higher interest rates.

Residential real estate: Mixed signals, but Dustin sees opportunity in the single-family rental space.

The real bubble: Short-term rentals (Airbnb). With 70,000 STR properties in Arizona alone, oversupply is driving down rates while municipalities crack down on permits. Many overleveraged STR investors will face foreclosure in the coming years.

For long-term rental investors: This creates opportunity as foreclosed properties return to the market and housing demand remains strong.

Tools and Resources

Deal Analysis:

IncomeBuilder.io – Dustin’s free property analysis tool
Built-in green light/red light system for quick deal evaluation

Financing:

DSCR loan brokers in target markets
20+ vetted mortgage brokers through Dustin’s network

Property Management:

Interview minimum 6 companies
Use Dustin’s 22-question framework
Test responsiveness with multiple contact attempts

Market Research:

Google Maps for inventory assessment
Local property manager insights for area analysis

Mistakes to Avoid

Buying before building your team – Build business infrastructure first
Focusing only on appreciation – Prioritize monthly cash flow
Managing properties yourself long-term – Use professional property management from day one
Emotional tenant management – Implement systematic, consistent processes
Investing in your expensive local market – Go where the numbers make sense

What’s Next for Dustin?

Dustin continues expanding his portfolio while coaching others at MasterPassiveIncome.com. His current focus is developing IncomeBuilder.io — software that guides investors through the entire property acquisition and management process.

He’s also working on his legacy: helping his five children each acquire 10 properties, creating generational wealth that will compound for decades.

Once again, check out Dustin’s free real estate investing starter course and learn more about his proven systems!

Dustin’s #1 Tip for Side Hustle Nation

“Never give up. Learn what works.”

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