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You don’t have to sell a house to profit from it. Many real estate investors opt to buy a house and lease it out for at least enough to cover the monthly expenses of holding it — mortgage, insurance, taxes, maintenance, and utilities. Here’s a rundown of how this strategy works:

 You buy the house at less than market value so that you earn equity at the time of purchase. In other words, if you buy a $100,000 house for $80,000, you immediately earn $20,000 in equity. You don’t realize your profit until you sell the house, but you can borrow against the equity.

 Assuming that the rent you charge covers your mortgage and other expenses, the rent pays down the principal of the loan, so your equity in the home gradually rises. (Your renters are paying off your debt.)

 As real estate values rise, your equity in the home rises accordingly, so the house is worth more when you sell it — assuming, of course, that your tenants don’t trash it.

In short, you’re making money in three ways: when you buy the house, when you hold the house, and when you sell the house. If you perform some value-added updates and renovations while you own the property, you may increase your profit even more. Of course, with this strategy you don’t see the immediate influx of cash that accompanies a quick flip, but your net worth (the value of your assets minus the amount you owe on those assets) gradually rises until you cash out your chips at the end of the game.