Most people understand the concepts of someone or a company owning a piece of property and renting it out to someone who needs a place to live. This is an over-simplified view of rental properties. There are numerous strategies and niches for working in rental properties such as: house hacking, self-management, 3rd party management, turnkey investing, BRRRR, short term rentals, student housing, specialty care facilities like group homes, and many more. Clean Slate Properties is primarily focused on 3rd party management and the BRRRR strategy.
3rd Party Management – When a property is acquired that is best used as a rental property, Clean Slate Properties hires a property management company that specializes in rental property management to find and screen residents, manage routine maintenance, provide systems to make payments easy and secure, and provide distributions to owners from the rents received. In this way, Clean Slate Properties can focus on finding more properties for sale or redevelopment and let specialists provide the highest- grade experience for our residents.
BRRRR – This strategy is aptly named the “BRRRR” strategy as each letter stands for a stage in a cycle of rental property ownership: Buy, Rehabilitate (Rehab), Rent, Refinance (Refi), and Repeat the process.
With this strategy, Clean Slate Properties can transform more properties by using our own capital and leverage (refinancing) than if we just used our own capital. By improving more distressed properties to a safe standard, while not over-renovating and pricing renters out of the market, Clean Slate Properties is providing safe housing for renters in many neighborhoods in West Michigan. This is critical as many people simply cannot afford their own home in their current financial situation or they prefer to simply rent a property and not be bothered with insurance, taxes, and capital expenses of maintaining a property long-term. Together, we are transforming houses, lives, and communities.