Skip to content
Welcome! Are you part of the community? Sign up now.
x

Posted almost 9 years ago

Buy and Hold is Not Sexy or Fast but it is Worth it!!!

As a 15 year veteran of Buy and Hold investing I can tell you it is not as sexy as flipping or wholesaling or buying notes, etc and that is why I like it!!!  If I wanted sexy or excitement I would gamble in the stock market and avoid real estate all together.

However, I want to be able to do what I want, when I want with whom I want and Buy and Hold real estate has given me that flexibility.

I still remember the day I bought that first rental house on Norris drive.  I was so excited.  I put 20% down on a 107K purchase price, got a 30 year loan and after a few bucks for make ready I was renting it out for $1,095 a month or $200 Excel Cash Flow.

Yes you read that correctly I said Excel Cash Flow.  All new investors have the fancy spreadsheets that spit out fancy numbers that always look great. I know I had that magic spreadsheet 15 years ago.

Then boom reality hits you as a landlord.  Here is just a taste of what hit me in the first 6 months.

First Tenant paid only 1 month rent

In California it took me almost 60 days to evict them

My first make ready cost was 3K but after this lovely tenant I had to spend another 10K as they were so good to the property on their way out (That is a joke - so feel free to laugh at my pain).

Stove and Fridge got up and walked out the door all on their own

I will end it there as the pain is 15 years old and for the most part Buy and Hold investing has been great with many more ups and downs.

That said you have to get your buying criteria down, you need a team especially if you work full time and you need to be invested for the long term regardless of how it starts.

Without getting into specifics I can tell you after 15 years my wife is retired and lives on cash flow and I could retire if I wanted to but I love my day job and see no reason to leave it just because I can.

For the full time employee Buy and Hold is the way to go as other options feel more like second jobs than passive investments but you need a plan and you should have a mentor even if you find them in books or online as their is so much knowledge on BiggerPockets!!!

Good Investing

Z


Comments (4)

  1. You are so very welcome. BiggerPockets is the place to be for the new investors.  I am not ashamed to admit that even after 15 years of on the job training I still learn a ton from this community.  It is one of a kind and everyone believes in giving back.  Keep reading, asking questions and you will get their just like Jeff and I did as a Mentor is never a requirement for success!!!

    Good Investing


  2. This was an excellent article as I'm now taking the steps  to start buying and holding. I don't have a dedicated mentor to help along the way but so far this BP community has given me great advice a d insight to make the next steps.  Thank you so much @Michael Zuber


  3. Owning and managing rental property is easy. As you stated, you didn't have a plan, had a bad first year and did fine. So why do you conclude that others need a plan and a mentor? A good network certainly makes it easier to get best practice type answers but it isn't necessary to be a successful landlord or property owner. Many people, like you, and I, find their way to a fine income with little help at all.


    1. Hi Jeff

      I couldn't agree more not everyone needs a mentor and like you and I the process can be figured out and turn out just fine.

      That said based on the request I get a month for coffee, lunch, etc I had to do something as my full time job doesn't offer the chunks of time I continually get request for.  

      It is really just a gating factor as I clearly believe in giving back frequently

      Congrats on your success Jeff

      Z