Let’s Get Ready to Buy and Hold Real Estate
Are you ready Buy and Hold Real Estate?
Buy & Hold: A Heavenly Strategy for Long-Term Riches A classic real estate investing strategy with a newer twist has the potential to help you build a fat real estate investing portfolio that will be the envy of all the “smaller” investors at your REIA meetings. First of all, this strategy isn’t new. Visit online https://datnenlongthanh.org/ for more details,Generations of wannabe real estate investors have purchased property with cash or credit and used it to finance retirement, or as a part of their overall investing strategy.
However, by taking your strategy to the next level you can vastly improve your long-term potential for real estate riches – and have an on-going stream of continuous income you can use to fund other real estate transactions as well as an improved standard of living!
This strategy starts by finding good investment properties, so again, you need to know the area you’re interested in investing in. Don’t fall into the trap of buying something in a neighborhood like the one you currently live in – or want to live in. You need to find property that makes sense, so you should be looking for property in good solid working class neighborhoods that will still give you positive cash flow of $200-300 per month.
You’ll have two choices available when you place renters in your property: manage it yourself or hire a professional management firm. If you’re doing good to find enough time for a few hours’ of sleep every night you may decide not to manage your own property. However, if at all possible, you should try to manage your own properties. Nobody has a bigger stake in your financial success than you, so you’ll be your best manager. It’s also nice for you to gain experience dealing with the smorgasbord of personalities you’ll encounter on a day to day basis as you interact with your tenants.
Would you like to guarantee that your tenants pay their rent every month when it’s due? If this appeals to you, the Section 8 federal housing assistance program should have a lot of appeal to you. Here’s how it works. Based on tenant income, family size, and location, your tenants can qualify for housing vouchers that will pay a portion of the monthly rent. In some cases, 100% of a tenant’s rent could be subsidized.
If you go this route, you’ll have to dance to the beat of the government drum, which means your property will have to pass an inspection, and you’ll have to agree to follow a laundry list of government rules and regulations. Most of them are pretty reasonable, and the payoff is that on the first of the month your rent collection activities will consist primarily of logging onto your bank’s website and checking to see that the rent deposit came through correctly. The government may be a lot of things, but they
always pay their rent on time.
You can use the cash flow from your tenants to make your mortgage payments and pay all associated maintenance and repair expenses. In time, your tenants will pay down the mortgage and your property will appreciate in value.
$200-$300 per month in positive cash flow may not seem like much more than a small income stream but as you add additional properties to your portfolio it will turn into a raging river of real estate profits. Your monthly income will increase and before you know it you’ll have so much money coming in you’ll begin to question why you’re still wasting time at your 9 to 5 job. When you get to this point it will probably make sense to give your boss notice that you’re moving on to bigger and better things.