When you’re working with rental properties, you have a ton of potential at your fingertips. Especially if you’re already in the business of rental properties, you’ve already done some of the hardest work to enter the industry. Now, you’re probably thinking of how you can expand, and scale your rental property business. Nick Trimble is a real estate investor who knows exactly what it’s like to scale a rental property business, and now, he’s sharing his exclusive 2020 blueprint for success, which is a must read if you’re looking to scale your rental property business.
Nick, tell us about your work in rental properties.
I really learned what I know through firsthand, trial-and-error experience, which I think makes a big difference. I started off by buying my first rental property years ago, and it was a property I needed to fix up. There was a lot of learning that came with that first experience, but I’ve been able to keep my tenants in that property for years, which I’m very proud of. After that, I got involved in house flipping, which was a whole new world. But along the way, I’ve learned some really crucial lessons that I want to share with other investors.
What are some things you look for in rental properties?
While I like fixing up properties, I try to stay away from ones that need a ton of expensive work. I went down that rabbit hole before, with a property that needed never-ending repairs. These properties can drain your wallet but can also just be exhausting and disheartening. So now I look for prospective rental properties which don’t need a ton of expensive work. Cosmetic repairs are fine, and it can be fun to fix up the property to your liking. Just don’t get in over your head.
What about working with contractors?
I highly recommend choosing the right people to work with for your project. I also had an experience where I worked with the wrong contractors, which was a big learning experience. You want people who you can trust, who will do the work well, and help make your vision a reality, for an affordable price. It can actually be tricky to find the right contractors; which people don’t think about.
How can someone scale their rental property business?
It may seem overwhelming but acquiring new properties will be the fastest way to scale your business. Only take on as much as you can manage at once, but you should really look at acquiring as many rental units as you can manage. Make sure your cash flow is positive and can support you as you take on these new projects. And I’m all about conservative growth. You don’t need to scale up as quickly as possible but think about scaling up as smartly as possible.
What should people know before buying their first rental property?
You definitely want to do your research before buying your first rental property, but the good news is that there’s tons of resources at your disposal. In general, I think people overlook the fact that you want to know a lot about the neighborhood you’re looking to invest in, and you want to take a good look at other rentals on the market in the area. That will tell you a lot about how your rental could fare, and what you could charge. I recently shared some more things you should know before buying your first rental property in this article.
How can people learn more?
I’m sharing a ton of tips and tricks you need to know to be involved in the rental industry on my website, which you can find here. I’ve really made it my mission to help other real estate investors, and if you’re looking to scale your rental property business, I want to help you get there.