Cashflow or Appreciation?

Question

Real estate investors usually fall into one of two camps:

Appreciation-focused – playing the long game, betting on property values to rise over time.

Cashflow-focused – looking for steady monthly income and returns right away.Neither is “better” than the other—it all comes down to your goals, strategy, and lifestyle.So, I’m curious… which type of investor are you? Appreciation  or Cashflow ?Drop your answer below—I’d love to see where everyone stands!

Michael Liggett · Answer

I’m team “Cashflow and Appreciation.” Cashflow gives you stability and sleeping power; appreciation is your wealth engine.

Kerlous Tadres · Answer

Hey Ernesto, I would say that you can get a little bit of both, especially in the Midwest. I would look more into those areas to see how you can get some cash flow and appreciation

Jules Aton · Answer

Both. I purchase properties in need of work in excellent school districts so they tend to cost more upfront and not cash flow as well as they appreciate but I won’t buy if it won’t cash flow.

Arman Ahmed · Answer

@Ernesto Galindo-Doucette

Hey Ernesto, it really depends on your goals and comfort level. I focus on cashflow in the Midwest because it gives steady income while properties appreciate over time. I’ve found balancing both—steady cashflow with upside potential—lets you grow wealth while keeping risk manageable. What’s your strategy leaning toward?

Jay Burke · Answer

I'd like to start off saying that i'm no professional, For me, my mid term goal is W2 relief and legacy. Appreciation! Ending with cash flow.

Mike Paolucci · Answer

Big believer in a combo. Got started off with cashflow back in 2021. While those have appreciated and given me good cashflow, I've started targeting better areas with less cashflow but more peace of mind.

Robert Rixer · Answer

Most people start as cashflow and then develop more toward the appreciation side. The tough part about appreciation plays is small or negative cashflows in the near term. Most newer investors aren't liquid enough to be able to even consider true appreciation plays and often end up buying C and B- properties.

Basit Siddiqi · Answer

I aim for both.I try to look for markets where I can get an overall 8% rate of return of which 4% is cashflow and 4% is appreciation.Some years, cash-flow wins out and there is no appreciation. Some years, there is no cash-flow but appreciation is crazy.Best of luck

Lindsay Davis · Answer

@Ernesto Galindo-Doucette,

My opinion is that considering your total returns (i.e. the sum of cash flow and appreciation) makes the most sense.

The reason is that there’s typically a tradeoff between cash flow and appreciation. Markets that yield higher cash flow generally tend to appreciate less, and vice versa.

Depending on your need for current income, tax bracket, and other factors, you may prefer one over the other. In the grand scheme of things, though, both represent a possible source of return, so the most profitable real estate investment is the one in which the sum of cash flow and appreciation is highest.

Carl Millsap · Answer

@Ernesto Galindo-Doucette 100% cashflow

Cashflow or Appreciation?

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