Buying and holding real estate is a long-term wealth strategy. To evaluate a property properly, you must look beyond the monthly rent and account for all carrying costs and future appreciation. 💰 The Buy and Hold Equation A successful investment generally satisfies two conditions:
Investors often use the : expect 50% of gross rent to go toward expenses (excluding the mortgage). Mortgage (P&I): Principal and interest on your loan. Property Taxes: Monthly escrow amount.
Why it matters: Allows you to compare different properties quickly. 3. Cash on Cash Return (CoC)