Cash Flow & Appreciation

17 Replies

Like @Bryan 

@Bryan Noth said.  These properties are everywhere, but not anywhere.  However, you can find many markets where you can get both cash flow and appreciation.  What makes this happen are the specific strategies you use...at that time.

@Joe Villeneuve just wanted to spark the conversation for my own knowledge as well as other investors and their predictions. Ultimately, yes that is the goal to find a property or properties with decent cash flow and appreciation, but those hidden gems certainly are difficult to find

I invest I San Antonio and surrounding areas. BUT I have not used an agent to find a property for me in about 7 or 8 years. I have done my own marketing since the beginning in 2002.

Right now everyone is pushing for higher and higher prices. Agents know this and there are not many deals on the pls unless you are looking at 100+days on market or some other metric where you will have to negotiate hard with sellers. 

I find distressed owners are the easiest to deal with. They don't have the property on the market with people competing to get the highest price. They are in a situation that they need help and answers to their questions about how can I sell and get moved out. After we close, can I have a week or two to be able to get moved? They are having issues that you can help them with. 

When you can help people with their issues you can find cash flow and appreciation. I think you can do that in any market, even the expensive ones. It all starts with the price and/or terms of the property.

Originally posted by @Joaquin M Dugan Jr :

@Joe Villeneuve just wanted to spark the conversation for my own knowledge as well as other investors and their predictions. Ultimately, yes that is the goal to find a property or properties with decent cash flow and appreciation, but those hidden gems certainly are difficult to find

 Not that hard really.  How hard it is depends on how many strategies you know how to use.

You gotta find good deals but lots of areas fast appreciating and cashflow at 25 down. Aurora IL and Elgin Il can get over 10% coc and lately atleast they have been appreciating 5%+ a year on the 2-4 units. In Chicago northside we have been seeing 5-10% appreciation in the gentrifying areas but you gotta look really hard and know how to find below market rent deals to cashflow. They are out there though (I house hack a 4 unit north side chicago). 

@Joaquin M Dugan Jr I've argued for my own market (Fayetteville, NC) as being chiefly opportune to catch a firm gust of appreciation while remaining the meteoric cash-flow generator it has historically been. It largely has to do with The Great Migration, reallocation to real assets, depressed economic activities over the next decade, and specifically to Fayetteville, America's largest military base. Essentially, shop for cash flow right now. Away from large commercial urban areas. You'll get appreciation as a bonus. Oh, and go where it's warm.

@Dan DiFilippo that is my approach honestly. To search and invest in a positive cash flowing market, then the appreciation that hopefully comes with it is simlly extra, at least for the first couple properties, then appreciation afterwards and long term holding will be more of the focal point

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you