Payoff for buy and hold strategy

Payoff for buy and hold strategy

Houston, TX · Member since 2012 · 33 posts · 13 votes

I am new here, but have been lurking on BP for a while. Its a great site, and very informative.

I have been investing in SFRs in a smallish town in Texas for 11 years now. Buy and hold strategy. I am up to 11 units now. All cash flow--usually. My goal is to get to 20 units in the next ten years.

I have been going about this the slow way, i.e., putting 20 percent or more down and investing almost all of the cash flow back into acquiring and paying off the properties. The process is just starting to pick up as the debt is paid off and I get more property, as the cash flow is enough to buy more properties sooner now--but it is still slow.

Given how slow it has been, I guess I am looking for a pick-me-up. I was wondering if others with a buy and hold strategy who are closer to their property goal can share their experience/results in taking things slow, paying off debt, and how the income really starts to grow over time? I know this will happen for me faster and faster as more time goes by (absent a major catastrophe, etc.), but it would be nice to hear about the payoff now from others who are there now.

Thanks in advance.

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Note Investor · Pasadena, CA · Member since 2009 · 849 posts · 544 votes
14y

Your on the "Get Wealthy, Slowly" path. I don't have a problem with it. You are minimizing your exposure to debt, and will soon get to a point where you'll have a bunch of a free-and-clear properties.

Stay the course.

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  • Note Investor · Pasadena, CA · Member since 2009 · 849 posts · 544 votes
    14y

    Your on the "Get Wealthy, Slowly" path. I don't have a problem with it. You are minimizing your exposure to debt, and will soon get to a point where you'll have a bunch of a free-and-clear properties.

    Stay the course.

  • Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes
    14y

    There is nothing wrong with doing what you're doing. Sounds like a solid business plan. A great book that teaches this philosophy is written by John Schaub, Building Wealth One House At A time. He teaches to buy 1 house a year every year for ten years and pay them off. Of course, there is nothing wrong with buying a few more and getting there quicker, but lots of people have taken that risk and ended up very, very broke.

  • Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes
    14y

    I prefer B&H. A lot of the fancy methods that gurus are pushing are harder to make work now, especially for newer people.

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