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Using the Buy and Hold Strategies with Apartment Buildings for Sale in Mississippi

July 4th, 2022

Watching the stock market can give any investor ulcers. Riding the wave of a bull market only to watch things slow down to a bear market leaves many wondering about the best strategies for increasing wealth. Real estate investors don’t deal with the same volatility, but when faced with changes to the overall economic scene, it’s helpful to utilize different strategies. One is buying and holding. This can be an excellent option when looking for apartment buildings for sale in Mississippi. Your preferred commercial property broker can help you find what you want.

Real Estate Buy and Hold Strategy Basics

Many strategy choices float around in the real estate investment world. Choosing the best one depends on your overall wealth-building goals. Here are some essential points about buying and holding real estate:

  1. The idea is to hold real estate for a long period of time: When you buy a new piece of property, the goal is to hold it for an extended time, such as five years or more.
  2. You enjoy monthly recurring rental income: As you hold onto apartment buildings or another real estate, you receive monthly rental payments, giving you regular revenue.
  3. The property appreciates over the long term: Real estate doesn’t see the same fluctuations as the stock market. The chances are good that your property will appreciate when you want to sell it.
  4. Hedge against inflation: Real estate prices increase faster than inflation over time. Additionally, increases in inflation can often be passed to tenants via higher rents as necessary.
  5. Tax benefits: Speak with your tax professional on the specifics of your situation. You can generally deduct items like operating expenses, mortgage interest, owner expenses, and depreciation. You can also defer capital gains taxes.

Factors to Look for When Using the Buy and Hold Strategy

As with any commercial real estate strategy, some factors will affect your success. If you keep an eye on the market and work with a dependable property broker, you stand a better chance of finding the right property for your portfolio. In general, here are a few factors to keep in mind when looking for new properties:

  1. Industry expansion: Look for cities where industries are expanding, leading to more jobs. For example, states like Alabama will grow even more in 2022.
  2. Population increase: New jobs entice people to move to the areas of the jobs, increasing the overall population.

Work with the Southeast’s Preferred Commercial Property Broker

Depend on a commercial real estate investment company that keeps your goals in mind. The Estes Group is a boutique brokerage that uses a client-focused approach. We use our market knowledge and partnerships to ensure you have the tools you need to reach your financial goals. We provide various services, including property and asset management throughout Mississippi, Tennessee, Alabama, and Louisiana.

Call us at 601-362-9633 or contact us online for help when you want to buy apartment buildings in Mississippi, Tennessee, Louisiana, and Alabama.