Cashflow or Appreciation

[Chris Thomas]

The topic has been discussed a million times in a million different ways but I have an opportunity to purchase 4 small 3bdrm homes for around 115k. They are in a economically depressed rural location and will be HUD properties. I believe current rent on them to be 550 and can prob be pushed to 600 each. My only issue with the deal is knowing that, most likely, they will never appreciate. I will simply have to hold them until paid off and then leave them as 4 little piggie banks. This will be the first purchase for my new LLC.. What are the expert's thoughts?

[Jay Hinrichs]

in my mind not enough gross income to pay for on going cap ex..  for me personally I can never understand why anyone would buy real estate that they know is not going to go up in value..  Unless its a bizz model and U can buy 100 of them and get some appreciable spendable income..  not to mention the brain drain and drama these type of properties produce over their life time.