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Updated about 5 years ago on . Most recent reply

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Deniz Eker
  • Philadelphia, PA
48
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102
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Buying properties for appreciation rather than cash flow

Deniz Eker
  • Philadelphia, PA
Posted

Would you recommend in investing in markets where there is an appreciation in last couple of years but minimal to negative cash flow?

If yes can you please convince me the reasons to keep a cash flow negative property for appreciation purposes?

And also is this a common strategy ?

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Jay Hinrichs
#1 All Forums Contributor
  • Real Estate Consultant
  • Summerlin, NV
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Jay Hinrichs
#1 All Forums Contributor
  • Real Estate Consultant
  • Summerlin, NV
Replied
Originally posted by @Jeff S.:

@Deniz Eker the best appreciation is in improving areas. Time it right and you cash flow upfront and appreciation over time. That is the Portland,OR story.

WEst coast tends to start off negative or neutral generally then rents rise and the next thing you know your positive as long as you dont massively increase your debt.. and then the prices rise now you have a true IRR investment that will eclipse the cash flow today and no appreciation tomorrow investments most every time.

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JLH Capital Partners

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