The Cincinnati real estate market continues to be a top ranking area for investing because of its relative affordability, economic growth and centralized location.
Whether seasoned or novice, or looking to grow your portfolio, the buy & hold strategy may be just right for your next deal.
Pros of Buy & Hold
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Monthly returns
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Long-term appreciation as the property value increases with time
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Numerous tax deductions on anything from mortgage interest to appliance depreciation to capital improvements
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Real estate can offer your portfolio some protection as inflation increases
Picking the “Right” Property to Hold
This is a long-term strategy, so your focus is on income production, whether from traditional or short-term rental. The property will appreciate over the course of your ownership, so the big payoff will come at the eventual sale. In the meantime, there is passive income to be gained while you hold the property.
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Choose a location where rentals are in demand
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Envision the property from a renter’s perspective…will this be rented to a family, empty nesters, etc. (typically the more rooms the higher the rent)
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Perform a rental analysis to ensure the property will cash flow (see our blog What You Need to Know About Rental Pro Formas (springvalleybank.com) for in depth detail)
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Determine the amount of repair needed and how the repair will be financed. More often than not, there is more value add in purchasing a property that needs repairs which is why the BRRR method is so popular. Additionally, the better the property condition the more rent can be charged.
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Negotiate the price based on the bottom line and condition of the property
Why Choose Spring Valley for Your Buy & Hold Financing Solutions
Once you’ve identified the property, Spring Valley is ready to assist you with quick decisions to close the deal. We are a well-established lender uniquely positioned as a community bank specializing in real estate financing solutions. Offering you, our clients:
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A streamlined application for quick decision making
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Faster access to financing funds
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Practical real estate and banking expertise
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A personal banking relationship for the duration of your loan
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Confidence of an established financially secure banking institution
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An investment into your community by banking locally
Our residential & commercial loan processes are set up with the real estate investor in mind. Your experience is what it’s all about. If you are interested in learning more about our buy & hold program, or other transactional funding, give us a call 513-761-6688, or stop by for a visit.
