Buy and hold real estate boasts numerous benefits. With both home prices and rents on the rise, rental real estate investing lets individuals collect monthly rental income as well as the long-term ROI associated with the ultimate sale of their property. However, buy and hold real estate isn’t for everybody. Before you decide to dive in to the world of buy and hold investments, make sure you understand and have a plan for dealing with all of the challenges that go along with this particular type of investment.
The Woes of Being a Landlord
With the right tenants in the right properties, being a landlord can be a pretty simple gig. Unfortunately, this is not the norm. Being a landlord means you need to be ready to demand overdue rent, fix broken pipes in the middle of the night, and potentially take bad tenants to court. If you intend to serve as the landlord of your properties, it’s important to have a solid understanding of the full range of responsibilities that you’re taking on. If these don’t sound like your cup of tea, you should seriously consider hiring a property management company to work as a landlord for you. Such companies can take a great deal of stress and frustration out of buy and hold investing.
Good Income, Long Commitment
Buy and hold investments offer the benefit of monthly rental income, which can be a great way to supplement your finances. Rehab investing, on the other hand, brings investors large payoffs in a matter of months. If you get a secret thrill out of the lump-sum-style of fix and flip, you might find the slow, steady payoff of buy and hold a bit frustrating. Keep in mind that if you have the time, financial stability, and patience, a buy and hold investment can be even more lucrative than fix and flip, often with less work. Which investment is right for you frequently depends on which type of work you enjoy doing more.
Vacant Homes, Vacant Pockets
One of the biggest risk that goes along with buy and hold investments is the risk of your property laying vacant for months at a time. Make sure that you’re prepared for this possibility and have strategies in place for finding great tenants to fill your homes. This is another place where a property management firm can help take over tasks that you might find undesirable.
Contact ZINC Financial to learn more about the benefits of buy and hold investments, as well as our rental real estate loans which are being offered with rates as low as 7.49%. ZINC offers some of the most competitive loan terms in the industry and is backed by a solid reputation of success. Call (888) 552-6637 now to learn more.