If you're a relatively new investor, you might be asking "How do I build a portfolio of rental houses?" Check out this short video or keep on reading to learn just how to do it.
How do I build a portfolio of rental homes? Since this is something I've done, I want to do my best to simplify just how you can get started building your rental portfolio. I actually started and bought my first rental home when I was 23-years old and have continued to do so for over 15 years. In this article, I'll lay out the 3 keys to getting started in building a rental portfolio. Let's go!
1. Define Your Area
The first thing I would do is define your area. I always tell people when they're getting into buying houses is to focus and become an expert on one certain area. I see a lot of people that get, kind of, what I call Walmart disease. This is where they're just an overwhelming amount of houses out there and it's hard to sort through all of them. I would find a specific area and become an expert on that.
2. Always Be Looking for Properties
The next thing that I would do is to be consistent when you're looking in that area. Become very disciplined about looking. So number one, you know the area. Number two, when you see a house come across that is in that area that you know's a good deal, that way you can act very fast. So being consistent, looking on a daily basis, or at a minimum, every 48 hours of all the new houses coming on the property will help you buy more houses and build a portfolio.
3. Purchase Consistently
Number three is to purchase consistently. Don't do one and done. You know, I always tell people,
Hey, get to ten houses because at about ten houses this business starts to kinda take care of itself. The cash flow takes care of itself. And it becomes a very kinda self-sustaining business.
Now there may be a time you have to put a little more money into it. But generally speaking, the cash flow takes care of itself at ten or more houses.
BONUS: Think Stabilization
And the last thing I would say when starting to build your rental portfolio: think stabilization. Any time you get off-kilter, don't try to keep buying, buying, buying. Stabilize your portfolio. Typically somebody may get off-kilter from a cash flow standpoint or get too many houses going at one time. Think stabilization. The whole idea of rental property is that it's a kind of steady-eddy stable business and if you think stabilization, you're never going to go wrong.
Connect With Us
I hope these tips will you take action and start building a successful rental portfolio. If you have any questions or need help building your team, reach out to us! This is exactly why we started Evernest Brokerage. From having access to off-market deals to building a team to knowing the right rental rates, buying properties in a new market can be tough as an investor. Invest in some of the best real estate markets in the United States without needing to be the expert. Working with Evernest’s in-house brokerage team of investor-friendly Real Estate Agents is the simplest way to build a local team and grow your rental portfolio. All you have to do is fill out this form and one of our agents will reach out within 24 hours.
