For someone looking to begin investing, one of the most promising investment areas is buy and hold real estate. Buy and hold real estate is considered a long term investment strategy because you purchase a property with the intent to sell much later at an increased appreciation while renting the location to help offset the cost of owning it. A property in a good neighborhood can quickly yield short term financial gains with the potential for larger long term gains.

The best investment properties are located in areas of promising job and population growth.

Buy and hold real estate does require some research and a willingness to put in some work. The most profitable properties will be ones where some maintenance is required to attract potential renters. The most important consideration for this type of investment is finding adequate funding through loans for both the property and long term maintenance. Before purchasing a property, the investor needs to determine whether enough revenue can be made from the property after the expenses from mortgage, taxes, and general upkeep are met. So, in an area with promising growth in the near future, with a potential for property appreciation, buy and hold real estate can quickly return a quick profit.

Key Points:

  • 1Buying and holding real estate is a smart choice for investors.
  • 2One of the important steps is to find the right property.
  • 3Another important step is to finance the right property for your personal needs.

You can get a great deal on price, but if there is no demand you will have a tough time finding tenants.