Using Buy and Hold Real Estate to (Accidentally) Build Wealth

Buy and hold real estate is an extremely profitable type of investing, but today’s guest didn’t know that until she accidentally did it. Ali Garced stumbled upon buy and hold real estate after her “accidental rental” lacked cash flow, but appreciated for double the price only a few years after purchase.

Given that her dad is an investor, Ali has always been exposed to real estate, but it wasn’t until she was in the military that she decided to pursue it for herself. Once she realized how great of a resource VA loans are, Ali was determined to buy a house for herself. She purchased a house through the MLS but had to deploy before moving in, so that gave her another opportunity—renting it out. While it had seemed like a great idea, Ali later learned about the 1% rule and realized she was merely evening out after expenses and had no cash flow. This left her questioning if real estate was for her until she checked the appreciation of the house last year. From 2016 to 2021, Ali was shocked to find that the house appreciated double the price.

Her unintentional buy and hold profited more than what she wanted to get from renting—a very pleasant surprise. Since then, Ali has invested in four other properties, including an out-of-state turnkey and a duplex. While none of these properties have been a “home run”, Ali is more than thankful for her “base hits” because they helped her build wealth faster than she imagined. Turns out that it’s hard to not make money when buying the right real estate!

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Join the Real Estate Rookie Facebook Group:
https://www.facebook.com/groups/realestaterookie
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How to Run a Rental Property Cash Flow Analysis:

Cash Flow For Rental Properties: What is Average or Good?

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Should You Invest for Equity or Cash Flow?
https://www.biggerpockets.com/blog/equity-vs-cash-flowutm_source=youtube&utm_medium=description&utm_campaign=none
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Why Buy & Hold Is Such a Powerful Investing Strategy:

Why Buy & Hold Is Such a Powerful Investing Strategy

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Understanding The Basics of Property Management:

Understanding The Basics Of Property Management

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Follow Ali Garced on Instagram:
@ali_the_agent or https://www.instagram.com/ali_the_agent/
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Check out Ali’s Website:
https://garcedrealty.com/
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Connect with Ali on BiggerPockets:
https://www.biggerpockets.com/users/alitheagent?utm_source=youtube&utm_medium=description&utm_campaign=none
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Connect with Tony and Ashley on BiggerPockets:
Ashley: https://www.biggerpockets.com/users/echopm?utm_source=youtube&utm_medium=description&utm_campaign=none
Tony: https://www.biggerpockets.com/users/tonyr75?utm_source=youtube&utm_medium=description&utm_campaign=none

Episode 155

Show notes at: https://www.biggerpockets.com/rookie155?utm_source=youtube&utm_medium=description&utm_campaign=none

0:00 Intro
4:51 Using the Military & Her Dad as a Resource
11:04 Buying Her First Deal with a VA Loan
23:02 Building Her Portfolio After Her First Deal
26:42 Property Management vs. Self-Management
30:54 Financing Her Properties
32:31 Rookie Deal Review
48:04 Rookie Request Line
52:32 Rookie Rockstar