Cash Flow or Appreciation: Which Are You Choosing Right Now?

[Frank Ransom]

I'm curious how other investors are looking at today's market.

Would you rather buy a deal with thinner cash flow in an area you believe has strong appreciation potential, or wait for a property that produces better cash flow from day one?

I've seen investors make money both ways.

Some are willing to sacrifice a little cash flow because they believe appreciation, rent growth, and principal paydown will create bigger returns over time.

Others won't touch a deal unless the numbers work immediately.

What are you prioritizing right now, and what's driving that decision?

[Jules Aton]

I have always prioritized a good rental in excellent neighborhood which tends to skew toward less cash flow but have been easy to sell and witih solid appreciation. Aggravation level is often reduced also with higher end neighborhoods. The change I have made for current climate is paying cash on last two deals due to rates.