Cashflow vs Appreciation, MF investing
What's up BP. Looking to see what others investors think about picking up properties in smaller markets that have strong cashflow but will only appreciate 1-2% a year or less. I've found some good multi family deals in SK,AB, and NL that would cashflow 15-20% COC and have 8-10% cap rates. Also factoring the risks of picking up B and C class properties while finding tenants in small markets <5,000 or <10,000 population. Love to hear ideas and feedback good or bad.
Thanks
Most Popular Reply
agree with @Steven Silman. You want cashflow, appreciation and mortgage paydown. All 3. Are you able to force the appreciation? If so, then yes it would make sense to invests in those area. Caution on B and C areas. It is not just the lower rent, but the quality of the clients. Also it may have other undesirable things like rates, drugs/crime. Suggest you meet the other owners close by and ensure you guys are like-minded. Good luck.