Buy and Hold Expanded
Buy and hold real estate is an investment strategy that can help you diversify your portfolio. We’ve already introduced the topic in our latest blog, but we wanted to dive a bit deeper. With buy and hold, investors purchase real estate with the intent of holding onto it as it appreciates. In the meantime, they rent out the space until they’re ready to sell in the opportune market. Buy-and-hold helps protect you from the fluctuation of housing prices, especially when selling for a quick profit.
Here’s our expanded take on buy-and-hold:
Types of Buy and Hold Properties
Single-family homes are some of the best options for the buy-and-hold method. They’re easy to fix up before you’re ready to rent, and even easier to clean between renters. And if you’re truly fortunate, you’ll have long-term renters who you can rely on.
You might opt for a multi-family rental instead, and that’s great, too! Multi-family rentals mean more money in the short term because you’re collecting from multiple renters. The downside is that you’re liable to have bad renters who skip out on payments or damage the property.
Why Diversify?
Diversifying your portfolio with buy and hold properties gets you a steady cash flow in the short term through passive income. You can invest this money back into paying off the mortgage on the property. In the long-term, you’re looking at a huge win when the property sells. With a diversified portfolio, you’re lowering your risk of investment.
Buying Multiple Properties
If you’re established in the real estate game, you might want to buy more than one buy and hold property. You know that the more you have, the more money you’re going to make. In order to buy multiple properties, you’ll need to get familiar with your investing options. The best way to guarantee you’re on the right track is to get in touch with a mortgage broker that finds you ample choices for lenders.
What You Need to Know
It’s essential to ensure you’re working with the right team when investing long-term. You don’t want to be stuck with your second cousin, who briefly thought themselves a broker and only gave you two sub-par suggestions. Contact us at the Green Mortgage Team, and we’ll help you get started on shopping over 60 lenders.
-Kyle Green
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