In today’s economic climate, buy-and-hold is a solid real estate investing strategy.

Here are 3 reasons why:

1)      Return on investment. For the right property, well-managed and with a stable tenant, rental income is frequently 8% to 9% of market value.  After expenses, an annual return of 5% or more is reasonable — even in a still-uncertain economy!  Keep in mind this is if you own the property for cash. If you had even just 50% leverage on the property your cash on cash return along with your ROI go up substantially. That’s what makes this strategy so attractive right now.

2)      Gradually rising market. Though there’s still instability in the economy, the U.S. real estate market is showing a gradual recovery.  This means that a 3- to 5-year hold strategy should yield a nice return.  Backed with a profitable stream of rental income, the potential profits of a buy-and-hold property become even more attractive.

3)      Continuous income with less hard work. Rental income flows continuously for as long as you hold the property, whereas a fix-and-flip strategy only yields profits when a project is actively underway.  I love fix-and-flip projects, but I know how critical it is to diversify…if for no other reason than that I want to go on vacation from time to time!  🙂  Buy-and-hold is a tried and true strategy that should always be in your arsenal.

For more information on how you can escape the rat race for good and create lasting, generational wealth with real estate, download my FREE ebook, “How to Find Underpriced Properties: Secrets for Creating Wealth with Real Estate in ANY Economy.”