All Forum Posts by: H. Jack Miller

Both.  I buy and hold until the property recovers all of my cost (cash...as in DP), and my equity doubles from appreciation...then I sell.  That's when the property is at its highest value, and the start of it losing money.

Then, I re-invest the equity turned cash into the next DP...and cash flow property, where I repeat what I did with the first property.

I repeat this exponential growth, until I'm tired of making money.

I put 80% of my capital in cash flowing investments so holding is preferred. For single family buy and hold. Typically I will convert the long term rental into short term since the profits are 5-7x higher. Every 5yrs I will typically refinance the property and pull out the dead equity for additional investments (BRRR).

As far as commercial real estate investments, that market is super hot where I invest right now even with interest rates rising. Have seen a 5-10% downward price adjustment for new deals. However, still one of the best places to place your investment capital. for CRE will hold for 2-5yrs. Whatever works out best for the investor in the deal.

 I’m not a flipper. I’m a buy and hold investor. I’ll share reasons why:

1) I view each of my properties as mini annuities or pension plans whereby in 30 years, they will pay me a fixed income net of accruals, insurance and taxes 

2) I want to ride the appreciation since real estate performs decent when pegged to inflation rate; further, the depreciation and tenant paying your mortgage is a win win for me

3) I hate paying taxes. Capital gains exist when you flip unless you 1031 (I suppose)

4) I don’t have time and want real estate to be my side hustle. Work a demanding job and already hard to put in work to find deals. So, I buy on an A or B+ area and hope it trends to stay that way or move up in class rank, then sit back and let time and compounding work it’s magic.

Overall, I’m a conservative investor and want to get as passive as possible, so I buy and hold in Class A and B+ areas. Probably do not cash flow immediately, but I’m working for another 20 years or so, and love to work. Real estate is just my hobby and end state insurance plan to keep money coming into door when I retire. 

Hope this helps. 

Buy & hold. We might do some flips at some point, but that's another job. Laser focused on long-term "passive income" and generational wealth.

I don't know if there are any buy and sell investors, except the ones that are forced to, because they lack capital. Every flipper will eventually become a buy and hold investor, once they have generated enough profit.

Good morning @H. Jack Miller

I am a buy and hold investor. I believe the area I am in (North of Boston) will increase in value over time. I am still dealing with a manageable portfolio of 7 units across 3 buildings. Maybe I will trade up in the future. For now, these, plus any other properties I purchase, will continue to make up the vast majority of my wealth, and the cash flow is good for the immediate term. Also, you can take out loans against the properties to buy more, and not incur a capital gains tax (as the IRS code is right now). 

I'm buy and hold. Always have been. I personally am still in the beginning stages of my investing career and it just doesn't make sense to sell some of the properties I have bought yet. Sure the equity has gone up, but selling is a lot of work and even if you are 1031 exchanging it, it still takes a chunk of the profit out to do the transaction. Right now I'd rather plant a ton of seeds (buy houses an build equity) so that later down the road I can harvest them if I need to (sell them or dip into their equity). 

I'm probably on the more conservative end of investing though. I also think it takes time and energy to find a deal. I'd rather just scrimp and save in between transactions because it forces me not to rush into a risky deal because I feel pressured to have to find something quick. It forces me to slow down and re-stabilize before I buy the next one. Plus the more I hold, the more options I have if I need to liquidate in the future.  

Again, this is just me. There are no right or wrong answers here though. I think depending upon your goals and your personality, it will vary for each person...