Buy-and-Hold Real Estate Investing

Buy-and-Hold Real Estate Investing

The most common type of real estate strategy, buy-and-hold real estate investing involves purchasing a property, renting it out and holding on to it for a longer period of time. Generally speaking, this strategy involves keeping the property for at least five years after making the purchase, which is typically easier than fixing and flipping a property as an investment strategy.

Why is Buy-And-Hold Real Estate Investing a Good Option?

While other investment strategies certainly have their advantages, the buy-and-hold strategy is generally considered to be the easiest and best strategy for those who are new to real estate investment. This is because the buy-and-hold strategy does not require any type of special experience or knowledge. Rather, you can simply invest in the property and then hire professionals to help manage it.

Of course, even for those who are experienced with real estate investing, the buy-and-hold strategy can be a good option because of its generally “hands off” approach. Rather than getting bogged down by the day-to-day aspects of managing the property, a real estate investor can simply research the best properties to buy while leaving the details to a property management company to handle.

Whether an experienced investor or not, the buy-and-hold strategy also offers the added benefit of allowing you to build equity in the property over time. When the market is hot or if you decide you no longer want to hang onto the property, you can ultimately sell it for a profit. In the meantime, as you rent the property out, you are able to enjoy a regular stream of income each month from the property that you are renting out.

What are the Types of Buy-and-Hold Real Estate Investments?

If you are interested in getting involved with buy-and-hold real estate investing, there are a few different options that you can pursue. These include:

  • Turnkey Real Estate: “Turnkey real estate” refers to property that is all ready for move-in, meaning you do not need to make any repairs, updates or upgrades to the property before it can be rented out. In most cases, a turnkey property already has a tenant as well as a property management company in place.
  • Vacation Rental Property: A vacation rental property is one that you may use at various times of the year in order to spend time at your favorite vacation location. During those times when you are not utilizing the property, you can rent it out on a short-time basis to other vacationers.
  • Single-Family Home: A single-family home is one that you rent out to just one tenant.
  • Multifamily Property: A multifamily property generally houses two to four units, each of which can be rented out for rental income.
  • Apartment Building: Apartment buildings typically have five or more units that can be rented out for income.
  • Commercial Real Estate: Commercial real estate is a property that is rented out for business purposes, such as retail or office space.

With the help of an experienced property management company, you can enjoy generating extra income by investing in any of these property types without needing to worry about the day-to-day operations of any of them.


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