According to Sarah Larbi, buy and hold is one of the safer strategies during volatility because you are investing for the long term. While the market could dip 20 to 30 percent, as long as your tenants are paying rent and the property generates positive cash flow, you can ride out the cycle without panic selling.
The primary risk is buying a property that does not cash flow and relying solely on appreciation. Sarah emphasizes that investors should ensure all income minus all expenses produces net income every month. She also stresses rigorous tenant screening to ensure renters can continue paying through difficult periods.
Dalia Barsoum recommends an advanceable mortgage, which automatically accumulates funds on a secured line of credit as the mortgage principal is paid down. This provides a reserve for maintenance or non-payment and creates additional capital to purchase future properties without refinancing.
Sarah started in 2013 with the cheapest house she could afford and scaled to 10 properties comprising 14 doors by refinancing to pull out equity and repeatedly buying cash-flowing assets. This buy and hold approach allowed her to replace her employment income and leave her nine-to-five job.
