Definition
Buy and hold is the most popular residential strategy—purchase and hold long-term for cash flow, appreciation, and tax benefits. Typical hold periods are 10-30+ years.
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Find my pathAbout this term
Buy and hold is the most popular residential real estate strategy because it provides stable cash flow, tax benefits (depreciation, mortgage interest deduction), and long-term wealth building through appreciation and forced savings via principal paydown. Typical hold periods range from 10-30+ years. This strategy requires patience and works best in appreciating markets.
Pro Tip
Buy and hold works best in markets with population growth. Ensure positive or near-positive cash flow.
Example
An investor purchases a duplex for $300,000, collects rental income for 15 years, and sells for $450,000 after principal paydown