Cash Flow vs Equity in a hot Market
Trying to assess multiple opportunities in a hot market. Currently focused on lower end condo/townhomes. The home prices making it hard to pencil a positive cash flow. However cap rate is 5% on most properties and when considering equity increase over 10 year period my returns are 15%-20% YOY. Market appreciation is 3-4%. I don't need the cash flow to invest in more properties and I am a patient investor with a steady job. Can anyone help me decide to invest or move on to a new market. Thanks.