Flip Tip Summary
With rental portfolios, size matters. That is…your performance becomes more stable if you have more properties in it. You don’t feel the pains quite as much from the poor performing properties, if they’re offset my good performing ones. Tim Herriage tells us more in this FlipNerd.com Flip Tip!
Flip Tip Transcript:
Mike: Hey, it’s Mike Hambright with flipnerd.com and we have a quick VIP tip to share with you from Tim Herriage of B2R Finances. He’s going to share a tip on the importance of building a scalable rental portfolio.
Tim: Hey, Mike. When you really think about building a rental portfolio it’s all about spreading your risk across multiple houses, multiple doors, multiple units. The example is you have one house and it goes vacant, you’re 100% vacant. You have 10 houses, one goes vacant, you’re 10% vacant. If you have 50 houses, one goes vacant, you’re 2% vacant.
So the quicker you can actually get to a certain scale, I would say lease 10 houses, actually the better your investment portfolio as a whole because you’re going to have issues, you’re going to have road blocks but by having it spread across multiple assets it makes it where you’re not going to be disenchanted with the investment opportunity and you’re going to be able to stay the course that was part of your original business plan.
Mike: Thanks for joining us for another flipnerd.com flip tip. To access hundreds of tips and full expert interviews, please visit flipnerd.com or join us in the iTunes Store.
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Mike: Please note the views and opinions expressed by the individuals in this program do not necessarily reflect those of FlipNerd.com or any of its partners, advertisers or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investing can be risky.
