Warren Buffett will tell you that their favorite holding period is FOREVER!
This is a principle that as a young entrepreneur was incredibly difficult for me to wrap my head around.
First off…I do not care who you are… $50,000 is a lot of money to decide not to spend on today’s needs (or wants).
But making the choice to plant that seed today, will result in large trees that will not only provide shade for you to enjoy one day, but your grandchildren as well.
Let me give you the perfect example in my personal life. This is one that I have mentioned in prior newsletters but it is very applicable to the topic today.
When we moved from Arizona, we had the choice to either take $300,000 in equity and cash out (tax free mind you)… OR keep the low interest rate and turn it into an airbnb.
That decision has resulted in a harvest of over $100,000 each year for the past 3 years! Not to mention our equity has gone up another $150,000. We have already exceeded what we would have made by selling and taking the money.
In other words, we chose not to cut down a perfectly healthy tree and instead decided to nourish and maintain it and in return it has grown and continues to bring forth fruit every single month .
I WISH so badly that I could say that I learned this lesson in 2010 when we were buying homes for 30k that are now worth 400k… I have sold literally thousands of homes so I could cash in on a quick profit verse taking the long term approach that would at this point be worth well over 10 million dollars. Ouch.
But like Benjamin Graham says: “The investor’s chief problem — and even his worst enemy — is likely to be himself.”
Last week I discussed the 5 in 5 plan for investors. Buy 5 homes in 5 years to fast track your way to 1.25m in net worth (assuming you put 20% down on a 250k home each year)
Today, I am going to show you the compound effects of just ONE rental property.
This is really powerful, so stay with me here!
Let’s Zoom In On ONE Rental Property.
Here are the parameters:
- $250,000 property.
- $50,000 down payment.
- 30-year fixed loan.
- 3% appreciation.
- 3% rent growth.
Nothing fancy here at all.
Now let’s follow that one property for 30 years.
The 30-Year Result of One Property (Assuming you have a 30 year mortgage)
Appreciation
$250,000 at 3% annually becomes:
? $607,000
That’s $357,000 in appreciation alone.
Principal Paydown
The $200,000 loan gets paid off by tenants.
Now you own a $607,000 asset free and clear.
Rental Income
Rent starts at $1,900.
At 3% growth:
Year 30 rent ? $4,600/month.
No mortgage.
Even after expenses, that’s roughly:
- $3,500/month net income
- $42,000 per year.
Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.
Tax Advantages
Roughly $7,200 per year in depreciation.
Over time, that’s $60,000+ in tax benefits.
Now Add It Up
From one $50,000 investment:
• ~$357,000 appreciation
• $200,000 principal paid by tenants
• ~$450,000 cumulative cash flow
• ~$60,000 tax benefit
Total lifetime economic impact:
- $1,000,000+
One property.
One disciplined decision.
Now Here’s The Twist
Last week’s 5 in 5 plan builds a $1.25M portfolio in 5 years.
But if just one of those properties is held for 30 years…
It can create roughly $1M of total economic impact by itself.
So 5 properties over 30 years?
You’re not talking about $1.25M anymore.
You’re talking about $5M+ in long-term economic power.
That’s the difference between thinking in years…
And thinking in decades.
Most Investors Miss This
They focus on:
“How fast can I scale?”
Instead of asking:
“How long can I hold?”
Because time does the heavy lifting.
Real estate isn’t explosive.
It’s exponential.
But only if you let it be.
The Real Meaning of 5 in 5
5 in 5 isn’t about bragging rights.
It’s about starting 5 clocks early.
Because in 30 years, those 5 clocks don’t represent $1.25M.
They represent:
• Millions in equity
• $10K–$15K+ per month income potential
• Work becoming optional
• A different financial future for your family
The math isn’t aggressive. It’s patient.
The Math is Clear.
One disciplined $50,000 decision can turn into a million-dollar outcome over time.
Five disciplined decisions can change your family tree.
You don’t need 20 homes tomorrow.
You need one.
If you’ve been waiting for the “right time,” this is it.
The best time to plant the tree was 20 years ago.
The second-best time is today.
Let’s get you your first (or next) property.
Click below to reserve your next turnkey rental property!
| If you are looking to systematically build long-term wealth and secure your family’s financial future, click the link below to schedule a strategy call. Let’s discuss how our turnkey real estate model at Property Rush can help you turn the “5 in 5” philosophy into a tangible legacy. |
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