In the buy and hold strategy, what is essential to cover during the holding period?

In the buy and hold investment strategy, it is essential to cover debt with rental income during the holding period because the ongoing mortgage obligations must be managed effectively to maintain the investment. The rental income generated from the property serves as the primary source of revenue to cover these debts, ensuring that the investor can meet their financial responsibilities and avoid foreclosure. This aspect is crucial for maintaining cash flow and ensuring the investment remains viable over time.

While costs of repairs and renovations, marketing expenses for selling, and closing costs are important factors in property management and investment, they are more related to specific events or actions, rather than the ongoing obligation of managing debt. The need to ensure that rental income can effectively service debt is at the core of maintaining a successful buy and hold strategy, ensuring that the property remains profitable throughout its ownership.