Exit Strategy vs Buy and Hold?

[John M.]

My goal is to grow my rental property portfolio for long term passive income, and I am considering adding MFH to the mix as I see that there are benefits to MFH vs single properties with the economies fo scale that come with MFH.  

With this in mind it seems like a lot of the videos I have watched speak of making sure you have your exit strategy planned however does this pertain to buy and hold also?  Maybe this is meant only for investors who use short term financing while improving the property?   If my intention is to hold for an undetrmined period for passive income is an exit strategy even relevent?  I would want to use long term commercial financing or bring other investors into the deal who would want to hold for long term also.

Any insight/opinions appreciated.

[Kurt Jones]

As with any business plan, an exit strategy is always needed. Even the best businesses look to evolve in the future or they stagnate and become irrelevant. Real estate is no different. Granted, your exit strategy might be to sell at five years, refinance and get cash out for the next chess piece in your empire, or just to let it ride for ten years and pay it off. But I never enter into any investment without a good plan for how to monetize an illiquid investment.