Updated 2 months ago on . Most recent reply
Cash flow vs appreciation (out of state)
I'm an agent and just starting to look at doing out of state buy and holds. My plan was to purchase a couple houses at a lower price point, put larger down payment, cash flow, than let that sit to reinvest into new deals. If I can buy 2 or 3 for a few years, I should be able to multiply faster. I'm thinking in the 150k range. My question is, is that short sided? Should I spend the extra in better markets that have a higher appreciation, or is it ok to use cash flow to slowly work into markets that cash flow less but have better long term benefits? I have a renovation background, but I'm not really trying to play the value add game out the gate in markets I don't know.
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Since you are an agent I'm guessing you know the pros and cons of the options. Personally I don't want C&D properties and rarely B either. Generally my cash flow is more modest but with reduced tenant drama and an anticipated appreciation as well as ease of resale.