Hold period

How long the investor plans to own the property before selling or refinancing out.

Most deal underwriting models a specific hold period (typically 5, 7, or 10 years) and computes IRR at sale assuming a market cap rate at exit. Shorter holds emphasize forced appreciation + refi cash-out; longer holds emphasize amortization, depreciation, and rent growth. Tax considerations also drive hold length: a 1031 exchange can defer taxes indefinitely; long-term capital gains rates apply after 1 year.