Posted by Mike Daly (GA) on April 22, 2002 at 15:32:33:
Over the long term, buy and hold is what truly creates wealth as eventually the mortgages will get paid off completely, giving you substantial wealth in equity and cash flow from your rental income. The key is to survive long enough to get to that point.
Keeping Buy & Holds Lucrative - Posted by Amon
Posted by Amon on April 21, 2002 at 20:39:25:
How do you determine your exit point for buy & holds?
Should you immediately try & sell if a house’s cashflow becomes negative?
When buying & holding do you look at the house with an eye to see if an owner/occupier would actually want it if you had to sell it in the future?
Which makes more money in the long run: L/O’s & wraps, or buy & holds? I suppose it’s a good idea to take advantage of both since the appreciation of buy & holds can be very high.
Thanks for your response
Re: Keeping Buy & Holds Lucrative - Posted by Dan-FL
Posted by Dan-FL on April 23, 2002 at 07:31:26:
First thing you do is buy and sell until you have some money in the bank for any problems that come up to bite you with rentals,$25,000 is a good number to shoot for.After that,keep as many rentals as you want.This is what I do,I buy as many SFH that I can find and rent them out,they must cashflow at a min of $200 per month.I also sell one a year to replenty my cash stash.