YFP Real Estate Investing 123: Deep Dive: Vacant Unit Decisions

Jul 13, 2024

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Nate Hedrick and David Bright outline six essential steps for maintaining and preparing properties between tenants to help minimize vacancy and maximize profitability.

Summary

In this episode, Nate Hedrick and David Bright delve into the intricacies of managing vacant rental properties. They outline essential steps for maintaining and preparing properties between tenants, emphasizing the importance of thorough inspections and necessary repairs or upgrades. The discussion includes:

Property Inspections: Conducting detailed video walkthroughs to document property conditions and compare them to original move-in lists.
Market Understanding: Analyzing market rent trends and comparable properties to set optimal rent prices.
Security Deposits: Managing security deposits in compliance with state laws to avoid legal issues and ensure fair treatment of tenants.
Property Upgrades: Planning and executing upgrades in advance to enhance property value and minimize vacancy periods.
Expense Tracking: Keeping detailed records of all expenses, including receipts and maintenance costs, for tax purposes.

Nate and David highlight the importance of being active in the management process to reduce vacancy periods and ensure a profitable investment. They also touch on the decision-making process between self-management and hiring a property manager, depending on personal preferences and circumstances.

Treating rental properties like a business, setting aside time for proper planning and execution during tenant turnover can help maximize profitability and create a safe living environment for future tenants.

About Today's Guests

Nate Hedrick is full-time pharmacist by day, husband and father by evening and weekend, and real estate agent, investor, and blogger by late night and early morning. He has a passion for staying uncomfortable and is always on the lookout for a new challenge or a project. He found real estate investing in 2016 after his $300,000+ student loan debt lead him to read Rich Dad Poor Dad. This book opened his mind to the possibilities of financial freedom and he has been obsessed ever since. After earning his real estate license in 2017, Nate founded Real Estate RPH as a source for real estate education designed with pharmacists in mind. Since then, he has helped dozens of pharmacists around the country realize their dream of owning a home or starting their investing journey. Nate resides in Cleveland, Ohio with his wife, Kristen, his two daughters Molly and Lucy, and his rescue dog Lexi.

David Bright is a pharmacist with a heart for teaching. He’s been a full-time professor since 2009 with a passion for implementing and improving pharmacy services. Themes of “implementing and improving” in the pharmacy space are quite similar to themes of “building and fixing” in real estate, which has been a growing hobby for David and his wife, Heather, who bought their first house more than ten years ago. That fixer-upper house became a live-in house flip, which they sold a few years later, only to repeat the process with their next house. When David and Heather got sick of perpetually living in a construction zone, they pivoted to fixing up rental properties in West Michigan, where they now live.

David invests in real estate as a way to bring greater diversity to financial planning and to fund memorable life experiences with family and friends.

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