Have you been exploring the world of buy and hold property investing? This long-term approach to real estate investing may not generate the quick returns of fixing and flipping, but it can yield big wins in the long run.
By holding a property for longer instead of making immediate improvements and selling quickly, you can ride out any short-term market fluctuations and enjoy stable monthly rental income. Since rental increases correspond to rising prices, you won’t have to worry about inflation taking a chunk out of your return.
The strategy of buying and holding real estate may sound simple. However, there are many techniques and strategies that you can use to improve your return on investment.
Getting the Biggest ROI From Your Buy and Hold Properties
Find the Right Property To Buy and Hold
Maximize Your Rental Income
Have a Contingency Plan To Cover Your Budget and Cashflow
While renting offers a steady passive income stream, some complications can arise that will eat into your budget and time. The most common are:
- Rent defaults
- Property damage
Keep Your Rental Rates Current
If you don't follow the trends in your area, it becomes even more difficult to recoup or improve on your initial investment. An excellent way to avoid this is to use PropStream's Heat Map feature to follow what's happening and run comps. You can search by county, city, or even a specific neighborhood. Then, pull up data including regional price growth and current and past rental values.
Having all this information at your fingertips ensures you can make smarter buy-and-hold investment decisions that increase the overall value of your portfolio. Try it for yourself with a free 7-day trial today.