Getting Started with Real Estate Investing: Why Unit Count Is NOT A Good Metric Of Success
Tony Stephan, RD
Registered Dietitian, Owner of Stephan Group Real Estate Brokerage, 259 rental properties, & Online Dietitian Academy / Telehealth Services
When people ask me how to get started with real estate investing, my advice might surprise you.?
I don’t say to aim for dozens of properties right away or obsess over unit count.?
In fact, unit count alone is one of the most misleading metrics for gauging wealth or success in real estate.
Unit count has become the "flex" metric people post on their instagram accounts...It's kind of like asking "how much do you benchpress" at the gym. Having a big bench press isn't an indicator of success or health. I know a lot of guys with a massive bench press, but couldn't run around the block to save their lives and are one pre-workout drinnk away from a massive heart attack.
In regards to why unit count alone isn't a metric of a successful real estate portfolio...
Cool, you "own" 800 units...but you're actually a syndicator and your ownership percentage is like 1% of that portfolio....Do you REALLY own 800 units?
Or, let's say you own 20 units, but none of them cash flow, they aren't in great areas and aren't appreciating in value...Is that inherently better than someone who owns 5 units but they all cash flow and are in a great area that's getting solid appreciation every year.
Listen, I'm not knocking anyones strategy. But I challenge you, the new real estate investor, to not get caught up on vanity metrics and focus on quality over quantity.
Get Started with Real Estate Investing: Simple Tips for Success
If you’re serious about building a solid foundation and a successful real estate portfolio, start small.?
Get started with real estate investing by buying just ONE rental property.
From there, focus on mastering the essentials:
Here’s a truth that might surprise you: Buying real estate is the easy part.?
The real work—the work that builds sustainable wealth—lies in managing and operating your rental properties effectively.
Why Operations and Management Are the Keys to Real Estate Investing Success
It’s one thing to buy property or raise funds for a deal.?
It’s quite another to bring a deal full cycle—from acquisition to profitable management to (potentially) refinancing or sale.?
This is where real, lasting success happens.?
My wife and I have successfully completed four cash-out refinances on multifamily properties, all thanks to our focus on in-house operations.
We learned this lesson firsthand.?
For a long time, we used third-party property managers, but we hit a wall at 87 units.
Operating costs were high, profits were inconsistent, and we realized that no one would manage our investments as diligently as we would.?
Once we brought management in-house, we scaled to 259 units with stronger profit margins and a dedicated team.
Starting with one rental property in 2020, we learned every aspect of the business.?
Now, we’ve grown our real estate portfolio to include a 100-unit building, a 56-unit, a 42-unit, and multiple small multifamily properties.
What’s the Key to Sustainable Wealth in Real Estate Investing?
There’s no need to rush.?
Building true wealth by investing in real estate isn’t about quick gains or massive portfolios right out of the gate.?
Remember: Revenue feeds the EGO, but PROFIT feeds the family.
Focus on:
Fast money is fleeting, but a well-run real estate portfolio can provide wealth for generations.
Ready to Get Started with Real Estate Investing?
Start your journey by subscribing to my YouTube channel.?
There, I share insights on our path to becoming successful real estate investors in the Detroit, MI area, explain our Multifamily BRRRR strategy, and offer practical tips for aspiring real estate investors.?
Finally, reach out to us at The Stephan Group to learn how we can help you get started in your real estate investing journey.
Let’s build lasting wealth together by investing in real estate!