Can someone answer this quick question ?

[Frederick Lyons Jr]

What are monthly holding costs and why do they occur?

[Joe Funari]

@Frederick Lyons Jr Holding costs are when you acquire a rental or flip and the time it takes to get the rehab done + time property spends on the market for either lease or for sale. So you need to first determine if your exit strategy is a rental or flip. And if you are going to buy something that needs rehabed or move in ready (from a rental standpoint). Flips may take you 2-3 months to rehab. I can only speak for the DFW market the days on market for a lease is 14 days. A flip, 6 days or less. It is insane here. But these time frames are after you completed the rehab. So you will need to figure out what it is for your market. Hope this is clear as mud......