Boring Buy and Hold Investors

[Gregory Schwartz]

Where are all my boring investors at? Does anyone else prefer good old buy-and-hold long-term rentals?

20-25% down, duplex, break even on cashflow in a promising area. That's what gets me excited. 

I've done major rehabs, owner financing, private money, partners, out-of-state investing, and Airbnb but still prefer the good ole long-term buy and hold. Even though they make less on paper. 

Am I the only one? 

[V.G Jason]

Quote from @Bob Stevens:

Quote from @Gregory Schwartz:

Where are all my boring investors at? Does anyone else prefer good old buy-and-hold long-term rentals?

20-25% down, duplex, break even on cashflow in a promising area. That's what gets me excited. 

I've done major rehabs, owner financing, private money, partners, out-of-state investing, and Airbnb but still prefer the good ole long-term buy and hold. Even though they make less on paper. 

Am I the only one? 

 Well, the smart thing to do is both. Have rentals and also flip. The biggest mistake of my life was not keeping 50 or so more of the 500ish I flipped, MASSIVE mistake. Wealth is built not flipped. 

BTW I would never buy a property that does not cash flow less then 15% . All mine avg 15- 25% NET per year, based on cash purchase. If you are 100% counting on appreciation, well, that does not sit well with me, NOT saying its wrong just not for me. I like a check the following month after I close. 

All the best 

Why was it a massive mistake?

[Bob Stevens]

Quote from @V.G Jason:

Quote from @Bob Stevens:

Quote from @Gregory Schwartz:

Where are all my boring investors at? Does anyone else prefer good old buy-and-hold long-term rentals?

20-25% down, duplex, break even on cashflow in a promising area. That's what gets me excited. 

I've done major rehabs, owner financing, private money, partners, out-of-state investing, and Airbnb but still prefer the good ole long-term buy and hold. Even though they make less on paper. 

Am I the only one? 

 Well, the smart thing to do is both. Have rentals and also flip. The biggest mistake of my life was not keeping 50 or so more of the 500ish I flipped, MASSIVE mistake. Wealth is built not flipped. 

BTW I would never buy a property that does not cash flow less then 15% . All mine avg 15- 25% NET per year, based on cash purchase. If you are 100% counting on appreciation, well, that does not sit well with me, NOT saying its wrong just not for me. I like a check the following month after I close. 

All the best 

Why was it a massive mistake?

Because they all tripled quadrupled or more in price in the last 7 to 8 years 

[Ivan Terrero]

@Gregory Schwartz

I believe John Schuab wrote a book about the.

[Brad Hunton]

I got my start in REI a little later than most here but since 2016 I still have all of the rentals (16 LTR) I have bought over the years. I am in the process of selling a portion of the portfolio but just switching from Class C properties to less problematic Class A properties. Long term rental all the way for me.

[V.G Jason]

Quote from @Bob Stevens:

Quote from @V.G Jason:

Quote from @Bob Stevens:

Quote from @Gregory Schwartz:

Where are all my boring investors at? Does anyone else prefer good old buy-and-hold long-term rentals?

20-25% down, duplex, break even on cashflow in a promising area. That's what gets me excited. 

I've done major rehabs, owner financing, private money, partners, out-of-state investing, and Airbnb but still prefer the good ole long-term buy and hold. Even though they make less on paper. 

Am I the only one? 

 Well, the smart thing to do is both. Have rentals and also flip. The biggest mistake of my life was not keeping 50 or so more of the 500ish I flipped, MASSIVE mistake. Wealth is built not flipped. 

BTW I would never buy a property that does not cash flow less then 15% . All mine avg 15- 25% NET per year, based on cash purchase. If you are 100% counting on appreciation, well, that does not sit well with me, NOT saying its wrong just not for me. I like a check the following month after I close. 

All the best 

Why was it a massive mistake?

Because they all tripled quadrupled or more in price in the last 7 to 8 years 

 Exactly-- that's why appreciation should be the primary focus not sole one. It goes against your bold to a degree as 100% is a bad focus but it should be the primary focus. Each to their own like you say but appreciation is where the money is made in (finite) and (physical) assets. Always will be. 

[Ryan Kelly]

@Gregory Schwartz the oldest and best strategy in my opinion. It’s designed to get rich slow, but it does get there.

[Tommy Sowell]

Back in th 1990's I bought fix an rented out my rehab and 10 years later sold for big bucks

I think these flip guy would be better off holding a few years before selling

[Gregory Schwartz]

SOOOO what do you do to make money in the mean time while the wealth grows?

[John Oks]

Quote from @Gregory Schwartz:

Where are all my boring investors at? Does anyone else prefer good old buy-and-hold long-term rentals?

20-25% down, duplex, break even on cashflow in a promising area. That's what gets me excited. 

I've done major rehabs, owner financing, private money, partners, out-of-state investing, and Airbnb but still prefer the good ole long-term buy and hold. Even though they make less on paper. 

Am I the only one? 

 Appreciation, cash flow and long term hold. That's why I work with build-to-rent developers.

[Alan Asriants]

Location, location, location...

People say the same story over and over: spend more time in market than timing it

[Tanner Bellamy]

Quote from @Chris Seveney:

Quote from @Gregory Schwartz:

Where are all my boring investors at? Does anyone else prefer good old buy-and-hold long-term rentals?

20-25% down, duplex, break even on cashflow in a promising area. That's what gets me excited. 

I've done major rehabs, owner financing, private money, partners, out-of-state investing, and Airbnb but still prefer the good ole long-term buy and hold. Even though they make less on paper. 

Am I the only one? 

 As I like to say, you all can go on the roller coasters while you will find me in the lazy river. That is how I also like my assets. No roller coasters anymore, give me the lazy river

 Love the metaphor Chris. Haha!

[Ryan Cheek]

Quote from @Gregory Schwartz:

Where are all my boring investors at? Does anyone else prefer good old buy-and-hold long-term rentals?

20-25% down, duplex, break even on cashflow in a promising area. That's what gets me excited. 

I've done major rehabs, owner financing, private money, partners, out-of-state investing, and Airbnb but still prefer the good ole long-term buy and hold. Even though they make less on paper. 

Am I the only one? 

Hey there!

I'm with you on the buy-and-hold long-term rentals! There's something solid and reassuring about investing in properties that can provide steady income over time, even if they don't look like the biggest moneymakers on paper.

In my real estate career, I've explored various avenues, from fix-and-flips to working with multi-family units and even considering out-of-state investments. Currently, I'm focused on selling new construction duplexes in downtown Indianapolis, which offer great potential for long-term investment.

While I'm still relatively new to the industry, I've found that consistency and reliability often trump the allure of high-risk, high-reward strategies. Long-term holds may seem "boring" to some, but they provide a dependable way to build equity and generate passive income over time. Plus, you get the added benefit of appreciating property values in promising areas.

It's always great to connect with fellow investors who appreciate the value of tried-and-true methods. Looking forward to exchanging more ideas and strategies here!

Best,
Ryan

[Aristotle Kumpis]

Slow and steady wins the race. I'm a buy and hold investor. It's not too exciting so that's why people gloss over it. You don't get that high risk flipping return. But I tell you what, I'd rather have 10 small free and clear homes that are giving me cash flow each month, compared to a riskier investment.

[Kevin Dureiko]

Quote from @Gregory Schwartz:

Where are all my boring investors at? Does anyone else prefer good old buy-and-hold long-term rentals?

20-25% down, duplex, break even on cashflow in a promising area. That's what gets me excited. 

I've done major rehabs, owner financing, private money, partners, out-of-state investing, and Airbnb but still prefer the good ole long-term buy and hold. Even though they make less on paper. 

Am I the only one? 

Considering I only do boring DSCR loans. I'm right there with you! Tried and true.

[Bob Stevens]

Quote from @Gregory Schwartz:

SOOOO what do you do to make money in the mean time while the wealth grows?

 Flip props, and collect the rent 

[Thomas Tsitouridis]

I started with 3 2-family properties, then STR, almost bought a boutique motel, now back to good ol long term holds. Long term play, this is likely your best bet. I am a NYC contractor and partner is a RE broker. We invest in Albany NY now and the returns are great. Looking to get into larger, 20+ units now. Just need to get our private lenders on board!!

[Anthony Stephens]

I do prefer buy and hold in Albany NY as well. I am from Brooklyn, NY and "discovered" Albany in 2021. It has good rent to price ratios but taxes are on the high side and I have found that I need to be diligent with oversight of property managers who run operations; especially with lower income tenants. I am just getting a handle on things.

[Jordan Tinning]

@Gregory Schwartz 🙋🏻‍♂️

[Stetson Oates]

Quote from @Bob Stevens:

Quote from @Gregory Schwartz:

Where are all my boring investors at? Does anyone else prefer good old buy-and-hold long-term rentals?

20-25% down, duplex, break even on cashflow in a promising area. That's what gets me excited. 

I've done major rehabs, owner financing, private money, partners, out-of-state investing, and Airbnb but still prefer the good ole long-term buy and hold. Even though they make less on paper. 

Am I the only one? 

 Well, the smart thing to do is both. Have rentals and also flip. The biggest mistake of my life was not keeping 50 or so more of the 500ish I flipped, MASSIVE mistake. Wealth is built not flipped. 

BTW I would never buy a property that does not cash flow less then 15% . All mine avg 15- 25% NET per year, based on cash purchase. If you are 100% counting on appreciation, well, that does not sit well with me, NOT saying its wrong just not for me. I like a check the following month after I close. 

All the best 

Wow these numbers are nuts. I buy all cash most of the time and 25% is outstanding. I've never been close to that.

[Bob Stevens]

Quote from @Stetson Oates:

Quote from @Bob Stevens:

Quote from @Gregory Schwartz:

Where are all my boring investors at? Does anyone else prefer good old buy-and-hold long-term rentals?

20-25% down, duplex, break even on cashflow in a promising area. That's what gets me excited. 

I've done major rehabs, owner financing, private money, partners, out-of-state investing, and Airbnb but still prefer the good ole long-term buy and hold. Even though they make less on paper. 

Am I the only one? 

 Well, the smart thing to do is both. Have rentals and also flip. The biggest mistake of my life was not keeping 50 or so more of the 500ish I flipped, MASSIVE mistake. Wealth is built not flipped. 

BTW I would never buy a property that does not cash flow less then 15% . All mine avg 15- 25% NET per year, based on cash purchase. If you are 100% counting on appreciation, well, that does not sit well with me, NOT saying its wrong just not for me. I like a check the following month after I close. 

All the best 

Wow these numbers are nuts. I buy all cash most of the time and 25% is outstanding. I've never been close to that.

 It used to be the norm 7-10 years ago in my market, now 15- 20% 

[Thomas Tsitouridis]

Quote from @Anthony Stephens:

I do prefer buy and hold in Albany NY as well. I am from Brooklyn, NY and "discovered" Albany in 2021. It has good rent to price ratios but taxes are on the high side and I have found that I need to be diligent with oversight of property managers who run operations; especially with lower income tenants. I am just getting a handle on things.

 Let's link up sometime. I am in Queens NY. Always looking to connect with investors

[Ian Ippolito]

Quote from @Gregory Schwartz:

Where are all my boring investors at? Does anyone else prefer good old buy-and-hold long-term rentals?

20-25% down, duplex, break even on cashflow in a promising area. That's what gets me excited. 

I've done major rehabs, owner financing, private money, partners, out-of-state investing, and Airbnb but still prefer the good ole long-term buy and hold. Even though they make less on paper. 

Am I the only one? 

Yes, I prefer long-term buy and hold.  Flipping is not a passive investment…it’s  actively running a business (and often with many unexpected headaches). And it comes with increased risk of loss in a severe downturn.

In my opinion, it can make sense when someone has more time than money. And at some point, the equation reverses and putting in the sweat equity is no longer worth it.

[John Morgan]

This has been my strategy. Just base hits buying a few turn key SFR every year in C to C+ class hoods. I have almost zero turnovers because these people can't afford to buy a house or qualify. I've for 28 SFR and enjoying the passive income.

[Gregory Schwartz]

@John Morgan Grand Prairie isnt far from us in College Station! Where are your SFRs? 

[Gil Wildridge]

It definitely has its place. It provides stability in an overall portfolio and sometimes gradual, more predictable returns. And the real estate itself isn't going anywhere.