A collaboration between Sell2Rent & Encore Finance
Why buy‑and‑hold still matters
The U.S. rental market is shifting. Single‑family rentals house 41% of all renters nationwide , rents are up, yet vacancies have climbed to 6.3% in Q1 2025, the highest since 2016 . With new supply coming online, investors must pick their markets wisely. Meanwhile, home values still average 3–5% appreciation annually , and some regions post double‑digit gains .
In this environment, buy‑and‑hold remains the adult in the room. You acquire a property, hold it for years, and let cash flow, loan amortization, and appreciation work their compound magic. Unlike flips or wholesales, you’re not betting on short‑term price swings, you’re building generational wealth.
What “buy‑and‑hold” actually means
You purchase real estate, single‑family, duplexes, or even portfolios, with the intention of holding it for years or decades. You rent it out, collect monthly income, and allow the property to appreciate while tenants pay down your debt.
Why investors love buy‑and‑hold
- Monthly cash flow: Tenants’ rent covers expenses and produces profit.
- Equity growth: Loan principal shrinks while property value rises.
- Tax benefits: Depreciation, expense write‑offs, and 1031 exchanges defer taxes.
- Stability: Long‑term holds aren’t tied to market timing; they weather short‑term volatility.
Five buy‑and‑hold strategies that work in 2025
1. Single‑Family Rentals (SFR)
The classic starting point. SFR demand remains high (41% of renters). Coupled with DSCR loans, you can qualify based on property income rather than personal W‑2s.
2. Small Multifamily (2–4 units)
Duplexes and triplexes diversify cash flow. One vacancy doesn’t wipe out income.
3. BRRRR: Buy → Rehab → Rent → Refinance → Repeat
Great when you buy at a discount and manage rehab costs. Refinancing pulls out capital to fund the next deal.
4. Sale‑Leasebacks
You purchase from a homeowner who immediately becomes your tenant. According to a Wall Street Prep analysis, buyers acquire a stabilized property with a long‑term tenant and immediate recurring income , often through triple‑net leases . With Sell2Rent’s marketplace, you can browse off‑market sale‑leaseback deals where rent starts day one.
👉 Explore inventory: Investment info, Register to invest: Sell2Rent sign‑up
5. Long‑Term Holds in Growth Markets
Invest in metros with job growth and population gains. National appreciation averages 3–5% , but hot markets see 10%+ gains —while underperforming areas may barely budge. Use analytics tools (Rentometer, RE analytics platforms) to track rents and vacancies.
Financing your investments with
Encore Finance
Encore Finance is a specialty private lender founded by Beth O’Brien, a serial entrepreneur and pioneer in fix‑and‑flip and single‑family rental lending. O’Brien launched AuctionFinance.com in 2011 and CoreVest in 2014, originating and managing over $20 billion in loans . She previously worked in securitization at Citigroup and real‑estate private equity at Goldman Sachs , and she holds degrees from the University of Pennsylvania and Georgetown University Law Center .
Encore’s products are tailored for buy‑and‑hold investors: Loan type Key terms
DSCR Rental Loans (1–4 units)30‑year fixed term with up to 80% LTV and a minimum DSCR around 1.10x . Loans range from ~$150K up to a few million.
Rental Portfolio Loans (5+ units)Portfolio loans up to $3‑5M+ with amortizations up to 30 years . Interest‑only options and both recourse/non‑recourse structures.
Contact Encore: encorefinance.com/contact · LinkedIn: Encore Finance
Contact Encore: encorefinance.com/contact · LinkedIn: Encore Finance
Risk management: don’t set your yield on fire
- Underwrite prudently. Stress‑test vacancy and expenses—vacancies are climbing (6.3% in Q1 2025 ).
- Maintain reserves. Water heaters prefer to fail on Friday nights.
- Screen tenants. Cash flow dies with late payers.
- Choose markets wisely. Vacancy and rent growth vary dramatically across regions .
- Understand your financing. Know DSCR tests, prepayment penalties, and recourse provisions before you close.
Conclusion
Buy‑and‑hold investing remains a cornerstone strategy—even as market dynamics evolve. Whether you prefer SFRs, multifamily, BRRRRs, sale‑leasebacks, or growth‑market holds, the fundamentals don’t change: cash flow, appreciation, and time are your friends. With Sell2Rent’s off‑market inventory (ready‑made tenants included) and Encore Finance’s DSCR‑based lending, you can source smarter deals and finance them efficiently. When executed with discipline and patience, buy‑and‑hold investing turns volatility into opportunity and builds wealth that lasts generations.
👉 Browse off‑market deals: Investment info
👉 Register to invest (free): Sell2Rent sign‑up
👉 Finance your next rental: Encore contact
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