Updated over 5 years ago on . Most recent reply
Do you invest for Cash Flow or Appreciation?
I'm new to the Real Estate Investing world. I haven't made the transition to stepping out and shopping for rentals yet. I'm still reading and educating myself. But I am curious. Do you guys invest for cash flow or appreciation or maybe even a mixture of both?
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#5 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
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#5 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
@Victoria Stokes In buy and hold, cash flow is key. In fix and flips, you are looking for forced appreciation.
When I look at buy and holds, I want both cash flow and appreciation. Meaning, I am looking for properties need renovation (although typically not as much as a fix and flip) and I can get more rent when renovations are completed. This method takes more work, but creates larger returns, and creates more options upon exit.