How Running a Proof of Concept Can 3X Your Rents
Can you really triple rents on a 26-unit studio complex by targeting a single niche market?
Nick Chapman did just that, turning a property in Wilmington, North Carolina, into a high-performing investment by catering to travel nurses.
Nick shares the creative steps he took to transform his vision into reality. From testing demand before making a $3.6M purchase to overcoming challenges like losing lead sources, he reveals how bold thinking and adaptability paid off.
For the full conversation, you can listen to the entire podcast episode here.
From Marine to Multifamily Visionary
Nick’s path to multifamily success wasn’t a straight line—it was a journey shaped by adaptability, resilience, and a knack for spotting opportunities.?
After serving in the Marine Corps and working as a state trooper, he found himself drawn to real estate through an unexpected mentor: his neighbor Kevin, a seasoned investor with over 650 units.
It was Kevin who encouraged him to think beyond his current career.
Nick’s decision to relocate to Wilmington, North Carolina—a city he knew from his Marine Corps days—was fueled by a mix of familiarity and market potential.?
It was there he saw an untapped opportunity across the street from a bustling hospital: creating a niche offering for travel nurses seeking midterm housing.
From cold-calling property owners to building relationships, Nick dove headfirst into the multifamily world, driven by a vision to create something unique.
Proving the Concept Before Investing
The Risk of Relying on Comps
Traditional real estate underwriting often relies heavily on comparable properties (comps) to project potential rents.?
While comps provide a baseline, they can fail to account for unique opportunities or misalign with actual demand.?
Nick recognized this limitation early.?
Instead of banking on average studio rents in Wilmington, he chose a more proactive approach: testing his market hypothesis before making a $3.6M commitment.
Testing the Market
Nick’s strategy was simple but bold.?
He created test advertisements for furnished studios targeting travel nurses and posted them on platforms like Furnished Finder and Facebook Marketplace.?
Despite not yet owning the property, the response was overwhelming—25 to 40 inquiries within days at rates significantly higher than existing rents.
The results weren’t just promising; they were definitive.?
With rents ranging from $1,900 to $2,300 per month compared to the $800 previously charged, Nick had the data he needed to move forward confidently.?
He de-risked the investment and unlocked the property’s full potential by proving the concept ahead of time.
Building a Winning Marketing Strategy
Nick’s initial marketing success came from Furnished Finder, a popular platform for travel nurses.?
But when the lead source unexpectedly dried up, he faced a new challenge.?
Nick pivoted to a strategy he could control instead of panicking: mastering SEO and leveraging Google Business profiles.?
He built a custom website optimized for search, driving inquiries directly to his business without reliance on third-party platforms.?
Nick also created a personalized and automated lead funnel to handle the growing volume of leads.?
The system qualified inquiries, provided instant responses, and addressed common questions upfront—such as pricing, amenities, and booking processes.?
Sales and Conversion: Lessons in Leasing
Emphasizing Value Over Price
Nick Chapman understood that perception drives decisions.
Instead of marketing his studios at $2,200 per month—a price that might seem daunting—he reframed the cost as $70 per night, all-inclusive.?
This simple shift allowed renters to compare his units directly to hotels, where nightly rates often climbed higher without the added perks of full-size living spaces, washers, and dryers.
Nick also created urgency by highlighting limited availability, encouraging renters to act quickly.?
Strategic language—such as emphasizing discounts for longer stays—further reinforced the value of his offering, making it an easy decision for his target audience.
Personalizing the Process
Beyond pricing, Nick’s success hinged on building trust.?
Personalized video tours, tailored to individual inquiries, gave renters a virtual walkthrough of their future homes, setting him apart from competitors.?
Follow-up messages were equally thoughtful, addressing renter-specific needs and ensuring every interaction felt personal.
While automation supported his process, Nick struck a balance by staying involved in key touch points.
Key Takeaways for Investors and Operators
Nick’s path is a testament to the power of preparation and adaptability in multifamily investing.?
His ability to test ideas, target the right audience, and build sustainable systems transformed a niche property into a high-performing asset.?
Here’s how you can apply these lessons to your own investments:
??Validate Before You Invest: Testing the market before committing, like Nick’s use of test ads, helps de-risk investments and ensures your product aligns with real demand.
??Target Niche Demographics: Catering to a specific audience, such as travel nurses, allows you to create tailored offerings that stand out in competitive markets.
??Leverage SEO for Consistent Leads: Building a self-sustaining marketing system through SEO reduces reliance on third-party platforms and ensures a steady flow of inquiries.
??Reduce Turnover by Aligning Offers with Needs: Focus on high-value renters with stable income to minimize unit turnover and operational challenges.
??Scale Sustainably with Systems: Automate where possible but maintain a personal touch to provide renters with a seamless and trustworthy experience.
Every investor has the potential to uncover hidden value—if they’re willing to think beyond the conventional playbook.
Success in real estate isn’t just about the numbers.
It's about the strategy behind them.?
By testing ideas and staying adaptable, Nick turned challenges into stepping stones and a niche opportunity into a thriving business.?
What opportunities are waiting for you to uncover with the right mix of creativity and preparation?
What was your biggest takeaway from this article? Let us know by leaving a comment below!