#Continued... #BuyAndHold... #WealthAccumulation
There is another set of expenses that must be calculated when evaluating any buy and hold deal, whether it be SFH or large apartment building - #Maintenance.
The reality is real estate deteriorates overtime. Certainly, most buildings are built to last long term. For instance, the time span of roofs is between 10 - 15years, depending on the location and material (the desert is really harsh on comp roofs, which is why clay roofs are often used and /or strongly recommended in some places... Second, hot water heaters can last 7years, if your luck has it. Third, floor coverings Oftentimes have to be replaced.Also, depending on how rough the tenant lived in your property, new interior paint may have to be added every few years too.
Therefore, you must account for the cost of maintenance, when evaluating the cash flow of a buy and hold investment.
The key to successfully buying and holding real estate is to be very selective in the properties you purchase. If you buy the property right and manage it correctly, it can be a rich investment. If you buy the property wrong and manage it poorly, it can be difficult and frustrating experience.
When you consult a viable realtor for real estate ownership lessons, you can make more informed decisions and ultimately become successful...for this, we have you covered. For quality real estate services from the team that cares, contact us today on +2348078247112.
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