A long term hold property is a property is being held for several years with the intent of realizing appreciation in the property, mortgage pay down and hopefully some positive cash flow due to renting the property out. This can be one of the most boring, steady and dependable ways of accruing wealth over a longer term and is where many successful investors put their money.
In the Alberta market virtually all properties fit into the mold of being a hold property due to the huge increases of property values over the last ten years. Unfortunately once you reach a certain purchase price the rents simply cannot sustain the mortgage payments and you move into a negative cash flow situation.
Due to the incredible growth in property values that many areas have seen in Alberta it has actually been possible for some properties to actually be positive overall even when they lose money monthly. Although this isn't necessarily the best plan as there are still properties out there that will work much better.
One of the mistakes that many beginning investors end up making is not accounting for vacancies or repairs. They make enough money to cover their basics of the mortgage, taxes and insurance, but suddenly they discover they need to replace a fridge, or have the roof re-shingled (these are steps experienced investors prepare for when they buy!). Once you have been burned by a bad appliance or two you soon learn how important it is to create reserve funds to take care of those issues.
Also as you buy more properties it becomes very important to have systems in place to track everything and manage everything. This is where the boredom starts to come in since once you have everything in place it starts to get easier as you just follow the steps.