And at no fault of their own – cashflow is what they were SOLD on.Here's what I want you to understand about “buy and hold” residential real estate:Let’s use a single family home with a property value of $300,000Let’s use an initial loan amount of $240,000Let’s use an interest rate of 7.25%And I’m going to give you $150 of cash flow per monthUse a 5% appreciation amount for your propertyLet’s see what happens after 5 years:After 5 years…$150 of cash flow per month = $9,000Your mortgage has been paid down to $227,000 = $13,000Your property is now worth $382,000 = $82,000So that’s $9,000 of cash flow, $13,000 of principle buy down, and $82,000 of appreciation.

Investment Info:Single-family residence buy & hold investment in Mishawaka.

You need to deploy that cash for the next one asap and keep repeating.

i show the seller how i come up with the offer price by going back from my ARV, minus holding cost - minus repair - minus the profit i am willing to take on the deal.

Investment Info:Single-family residence buy & hold investment.

Apply, move forward, fail, review, adjust, retry, succeed, create new goals & repeat.

The same thing generally holds true for journals, blogs, podcasts, amazon FBA, Shopify stores, etc.In real estate, a rental property with a property manager is pretty passive.

They do not have a banking license, just like a bunch of other fintechs they contract a bank to hold money. 

I’d say hold off.

Lather rinse repeat.