Buy and hold means buying a property and keeping it as a rental, collecting monthly rent while the property appreciates and the mortgage is paid down. It's the slow, steady path to wealth in real estate.
How to finance it
A DSCR loan is built for buy and hold: a long-term loan qualified on the property's rent, not your personal income, so each rental stands on its own as your portfolio grows.
The best rental deals often need work first, which a DSCR lender won't finance. A short-term bridge loan funds the purchase and the rehab. Once the property is fixed and rented, you refinance into a DSCR loan and pay off the bridge loan.
What to look for
- Cash flow: rent should cover the mortgage, taxes, insurance, maintenance, and vacancy with room to spare.
- Location: stable neighborhoods with steady rental demand.
- Condition: a rehab you can finish on budget, with lasting materials.