Buy and hold. Pay retail price?

[Jose Castillo]

Hi BP, would any investors pay retail price for a rental minus repair cost? Or would you treat it like a fix and flip and try to buy it at 70%? Or Would rentals typically sell for 80-85%?

[Joel Owens]

Really depends on goals.

Many on BP assume the main goal is cash flow for assets.

There are some people who make 300k,500k, 1 million a year. To them mainly it is tax benefits, equity growth over time, quality of the asset with no headache, cash flow.

So cash flow moves many spots down on the list.

Some that do not need the money see properties as a pay down retirement plan and tax shelter.

It's all about where you are with your current situation, where you want to go, and how much headache and problems you want to deal with for annual yield.