This transcript was generated from the episode audio and may contain minor errors.
[Music]
From house flipper to rental property group. Welcome back to side hustle school and welcome my friends to Throwback Thursday. This is a weekly segment coming out on Thursday. Funny how that works. Where we take an in-depth look at someone whose story has evolved since we first featured them, you get to go and do a little blast in the past and get an update.
Last week we went to Wisconsin, at least virtually. And we heard from the owner of a small scale algae farm. And this guy has ridden the wave of plant-based supplement popularity. Interesting stuff. There's always so many interesting things out there that I have no idea about, but people in our community are doing.
Today in our latest feature, we revisit a side hustler whose real estate investing experience evolved into helping families purchase their first rental properties in distressed cities. So she has set up this whole consulting firm basically, but she's also productized it to where it's not as much work for her. Or at least, I mean, it is work, but she does the work on the front end. So she's not just talking to people all the time. Her business sells, I think it's like $1,000 for basically a personalized action plan, a little bit of coaching, but mostly it's just kind of a term-based service.
So she's doing really well with this. And as mentioned, she's also helping a lot of people purchase rental homes who are into that kind of thing. So let's hear the story from her. I'll come back at the end with a few words of wrap up. [Music]
Five years ago, I was just another house flipper trying to make a quick profit in a rebounding market.
Now, I found my true calling, or at least a more sustainable business, helping everyday families build wealth through real estate in cities many investors overlook. My business, First Step Rentals, started as a happy accident. After successfully buying and selling a dozen properties, I began receiving messages from friends and acquaintances asking for advice. They weren't looking to flip houses. They wanted to invest in rental properties, but didn't know where to start.
I realized there was a gap in the market. Plenty of gurus were selling get rich quick schemes, but no one was offering practical, step-by-step guidance for average families looking to buy their first rental property in affordable markets. That's when the idea hit me. Why not create a service that provides everything a new investor needs to get started? I developed a course, a personalized action plan, and offered one-on-one coaching calls.
The price point, $1,000. Significant enough to ensure commitment, but accessible to many families looking to build long-term wealth. I focused on distressed cities like Detroit, Cleveland, and Buffalo. Places with low property prices, but strong rental markets. These areas offered the best opportunities for new investors to get their foot in the door.
The first few months were slow. I marketed primarily through social media and my blog. But as success stories started rolling in, business picked up rapidly. Families were buying properties for $30,000 to $50,000, putting in some repairs and renting them out for $700 to $900 a month. The numbers were compelling.
My program evolved based on client feedback. I added modules on property management, tenant screening, and navigating city-specific regulations. I also built relationships with local real estate agents, property managers, and contractors in each target city, creating a network my clients could tap into. One of my proudest moments came when a client, a school teacher from Idaho, successfully purchased and rented out two properties in Cleveland within her first year. She's now earning an extra $1,500 a month in passive income.
Early on, I had some challenges, including a few clients who rushed into purchases without proper due diligence, leading to some costly mistakes. I learned to emphasize the importance of thorough research and patience, even if it meant fewer immediate sales for me. The business has grown beyond my initial expectations. Last year, we generated $180,000 in revenue. I've expanded my team to include two part-time assistants who help with client communications and course updates.
What's most rewarding is the impact we're having, not just on our clients, but on the communities they're investing in. By encouraging responsible, long-term investment in distressed cities, we're playing a small part in their revitalization. Many of our clients end up forming relationships with their tenants and taking pride in maintaining their properties. On the operations side, I block out specific hours for client calls and course development, treating it with the same seriousness as my property deals. Looking ahead, I'm exploring ways to scale the business without losing the personal touch that's been key to our success.
As I prep for my next client call, I'm filled with excitement. In a few hours, I'll be helping another family take their first step towards building generational wealth. And in the process, we'll be breathing new life into a home, a neighborhood, and a city that many had written off. In short, I couldn't be happier about my grown-up side hustle. [Music]
Hey, Sarah, thank you so much for sharing the story.
Thank you listeners for being out there. I know we have a lot of people who are interested in rental properties. I haven't always had good luck with them myself. I don't own any real estate now, and I'm very happy about that. But of course, it just depends on you and your situation and where you are, what kind of investing you want to do, et cetera, et cetera, as always.
So I do respect those who've been able to make it work well. And listeners, let me know what you think, who you'd like to see featured from our archives of more than 1,000 stories coming up on 2,900 total episodes, which is just incredible. Again, big thanks to you for making it possible. If you have a question or an update, you know where to go, sidehustleschool.com. New episodes out tomorrow as we come to the end of the year.
The holiday months, be sure you're taking care of yourself during this time. I'll say more about that at some point, just 'cause it's a hard time, right? It's a hard time for a lot of people, at least. Let's note that. More on that at some point, but for now, new episodes coming out every day.
You can always follow or listen or subscribe for free, wherever you like. My name's Chris Guillebeau. This is "Side Hustle School." [Music]
From the Onward Project.
