Buy and hold investors- Target hold periods?

[Kyle Curtin]

Hi everyone! 

I wanted to run a question by the community regarding everyone’s preferences on their target hold periods for their properties!

So I have heard many different answers from investors regarding their target hold periods for their buildings, depending on the unit count and their strategy.

I have started to dig deeper in the small commercial multifamily space, as this is the direction that I am working towards in the near future. The hold periods are definitely much shorter in that space with target goals and more of a focus on trading the asset once the goals are met, etc. I love this kind of perspective! 

What is your target hold period and why? :)

[Karl McGarvey]

I don't set a time. Real Estate is so fluid that setting a date does not make sense for me. Example being the two condo's we purchased in 2020/2021, where we thought they would be long term hold STRs making 30% ROI a year, but the market changed so much in our favor we were able to pay them off in a year, and then sell them using seller financing for double what we paid for them. Rather than setting lengths of time for my holds, I remain as flexible as possible, always thinking of more than one exit strategy so that I can strike while the iron is hot.