Buy and Hold. What are your thoughts?

Question

Jake Thomas · Answer

Because there will always be a market for people wanting to rent. Home ownership isn't for everyone. Some people need a temporary place to live for a few years, whether it be to repair their credit, going through a divorce, relocating for a job or they just outright prefer to rent over own. I don't care what the reason is as long as they fit the criteria I have set forth.

Also, don't invest in buy and holds for appreciation, see that as a bonus only. Cash flow is what you need to be concerned with.

Kevin Hunter · Answer

@Xavier Jefferson, there have been multiple studies and surveys done on this topic over the last couple of years.  Millenials are fairly reluctant to buy as this time and prefer to rent to the tune of almost 70%. While that is just a microcosm of the overall population, it does show why rentals are still a very good investment. Check out business insider online.  They, along with many others, have written several articles on the topic.

I completely agree with @Jake Thomas, IMHO you should never buy for appreciation.  You buy for cash flow.  The folks that bought for appreciation in 2004 learning a tough lesson from 2006-2010.

Xavier Jefferson · Answer

Thanks for all the feedback @Ayodeji Kuponiyi @Jonna Weber @Jake Thomas !

Ayodeji Kuponiyi · Answer

@Xavier Jefferson some people can't afford a down-payment on a house and rent a SFH is the next best thing. Some people don't like having neighbors wall to wall or ceiling to floor. SFH provides people the comfort of living in a home minus the down-payment and taxes, insurance, etc. There's a product for anyone, you just have to market to the intended market. Best of luck!

Jonna Weber · Answer

There is a nice perk to owning a SFH rental (vs. a multi-family).  That is,  if there is much more demand for home ownership than for your rental in the future,  you can sell your rental to a home buyer.  By that time, hopefully the renters will have paid for much or all of your investment.

That said, I believe there will always be demand for a quality rental home!

Buy and Hold. What are your thoughts?

Most Popular Reply