Buy and hold
Buying a rental property and keeping it for years, collecting rent and letting equity build. The long-game version of real estate investing.
Your Room opens on showings and offers, with everything before the listing already ticked.
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See how it worksWhere this comes up: on the market
Part 1 of 4
Why a seller cares
A buy-and-hold investor plans to rent your home for years, so they price it on the rent it will earn, not on the comps a family would use. Their offer can be lower than a family's and close more reliably.
Part 2 of 4
A simple example
Your home would rent for $1,700. A buy-and-hold investor offers $210,000 where a family might pay $230,000, with no financing contingency.
| The buyer | How they price your home |
|---|---|
| A buy-and-hold investor | On the rent, the expenses and the return they want |
| A family | On the comps and how much they like it |
| Both at once | The family usually pays more; the investor usually closes cleaner |
Buy-and-hold buyers do arithmetic where families do feelings. The arithmetic is usually a lower number.
Part 3 of 4
What people get wrong
That an investor will match a family's price. Their number comes from the rent, and the rent does not care what the neighbors paid.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
In your Room, this word explains itself where it appears.
Your Room defines buy and hold in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.
Organize my saleFree to set up. Pay once when you list: $89 or $189. 7-day refund.