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.
Every term like this one lights up in the step you're on.
Free to set up. No credit card.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
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