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Boring Buy and Hold Investors
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, this!!! I purchase as primary residence, and then move and rent when I have a new downpayment saved. Not trying to make myself a new job, just want to be able to have the stability and retirement option.
@Rene Hosman I almost feel like we need a support group...
"Hi my name is Greg. I've been buying and holding investments for 6 years. Lately I've been tempted to flip but I keep reminding myself that steady cashflow in a strong market will ensure a comfortable retirement and will help put the kids through college" haha
#3 All Forums Contributor
- Investor
- Virginia
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
@Gregory Schwartz Me too. Am now working with some creative financing to solidify the reserves for my newest purchase. I’ve got the down payment and closing costs but am needing reserves.
This strategy has served me well for all my purchases.
Buy and Hold may be boring, but it beats the endless worries of many of the other strategies for me. Buy and hold works and has successfully built what my wife and I need to live and retire on. Flipping always seemed more risky and STR is riskier as well though it can be more profitable it can lead to serious losses. I will stick with boring.
The silent majority. This is all I do. I buy consistently, but not aggressively. One small multi at a time.
Low leverage, let time and inflation work their long term magic, keep the units occupied as much as possible.
So simple, so hard to just… sacrifice to accumulate the cash, and sacrifice the ego to not chase the huge portfolios and massive leverage that can leave you at the mercy of the near-term market.
Yes sir. I see the rentals as wealth building and flipping/development as a job (with ordinary tax structure). Love the buy and holds. It's a "Get Rich Slow Scheme"!
I got sexy with real estate, once.
I put a classic remodeled Airstream in my backyard. In total, we had about $75k in that project. Posted it on Airbnb and started hosting. That was shut down by my neighborhood with in months and I ended up selling for around $50k.
Huge failure that was offset by the appreciation of my fourplex. A fourplex full of long-term renters.
Tried, tested and reliable.
Boring buy and hold has served me well……
#3 Creative Real Estate Financing Contributor
- Rental Property Investor
- Ellsworth, ME
- 1,662
- Votes |
- 814
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#3 Creative Real Estate Financing Contributor
- Rental Property Investor
- Ellsworth, ME
Slow and steady still wins the race.
#3 Managing Your Property Contributor
Nothing wrong with buy and hold. That's what I do. There are lots of ways to invest in real estate each with pros and cons. Find what works for you and don't worry about what others think.
Quote from @Theresa Harris:
Nothing wrong with buy and hold. That's what I do. There are lots of ways to invest in real estate each with pros and cons. Find what works for you and don't worry about what others think.
Absolutely agree. Finding what works for you is the best advice anyone can give. Every market is different, skills are different, location matters, proper due diligence matters and your individual lifestyle even matters.
There are millionaires who live very humble lives and you would never know they were wealthy. Lifestyle matters in any financial decision.
I do the standard buy and hold but the property has to be bought at a discount - 85% of ARV is my maximum - including purchase price and rehab. Typically I like to be a little lower, but for an awesome property in an awesome location I can go up that high.
I like it because it's relatively simple and repeatable. Also less risky - the gains may not be as high but the losses also shouldn't be as bad if things go south.
BRRRR has gotten too hard to do and the money is tied up too long. I essentially try to buy a BRRRR type property and fix it up but never refi. So I'm in 20% down on the purchase price, plus the rehab costs (I only do cosmetic rehabs) - and I just never refi. So I take the equity gain on paper then rent it out.
@Jeremy H. This reminded me of my strategy, "The lazy / Slow BRRRR". If I can refinance most of my money out in 5 years or less that's a huge win in my book. My goal is to avoid major rehabs which for me lowers risk.
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?
I was doing that strategy for quite a while and still do. Lately, I have rehabbed 2 properties to increase the LTRs by a lot. So far so good! I have also got into lending as well. I haven't done a flip yet but I am open to it. LTR buy and hold has served me very well and I think a good basis in RE for most people
@Ray Hage I'll be honest I do rehab some of my units but the goal is cosmetic upgrades, nothing fancy. Usually, we can get this done in just a few weeks. Reface cabinets, new countertops, glue down flooring and fresh paint. This helps drive rents by 20-30% making it worth the effort.
I opened the walls up once. Dont plan on doing it again haha
Yep it’s a pain in the butt but well worth it. I had to redo the bathrooms as well and dealing with old crappy plumbing was not fun. Took a bit longer than expected. Frankly I hate plumbing now lol
Buy-and-hold is the way I do it. I love the way the tax code caters to us (depreciation is so awesome!) and appreciation is simply the cherry on top!
Also, pretty much every time someone moves out I put someone else in at a higher rent!
I am quietly trying to buy another 4-6 of these in the high desert area of southern california in the next 10 years. I hope to have 10 properties ( i am currently at 4) and at the age of 41...... by the time I am 50 years old and spend the age 50-60 trying to pay them down aggressively. Because the cost of repairs is so high I do need to pencil in $300-$500 in positive cash flow for repairs which will come up yearly.
It's all I do my man! And it's been pretty great for me :)
Patience is KEY!
Yeah, I'm a buy and holder. Some have called me a property hoarder.
#3 Real Estate Agent Contributor
- Real Estate Consultant
- Cleveland
- 3,597
- Votes |
- 6,293
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#3 Real Estate Agent Contributor
- Real Estate Consultant
- Cleveland
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