Rental Property Investor · Raleigh, NC · Member since 2021 · 5 posts · 0 votes
I live and work in Research Triangle Park and currently rent a room in downtown Raleigh.
I just recently completed the Guide to House Hacking book and am having a hard time understanding if net worth ROI or cash flow should be a bigger priority. For a move in ready house in this market, there is really no way to positively cashflow more than 100$ and a lot of properties I have assessed would have negative or break-even cashflows. These same properties would return me 10-15% yearly on my initial investment which is why I do not know which is more important and why. This is kind of a vague post but any input or opinions from people in a similar situation would be greatly appreciated!
Some extra information: I am looking at single family homes under 350K and am looking to put a 3% down payment on the property. My analysis is already factoring in a 250$ reserve (~15% gross income).
Investor · Austin, TX · Member since 2016 · 531 posts · 310 votes
5y
@Evan Gorczynski In my opinion, going for cash flow is significantly more important when starting out. That doesn't mean to ignore appreciation, but you need to optimize for one outcome!
Rental Property Investor · Raleigh, NC · Member since 2021 · 5 posts · 0 votes
5y
@Antonio Cucciniello I have not been factoring inflation into my analysis due to the uncertainty. The ROI is based off of the loan pay down specifically. Does that change anything?