180: Appreciation vs. Cash Flow: What Do You Want Most?

Jun 27, 2018

35:56

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#180: Stop looking at properties. (What?) I discuss.

Are you in real estate for appreciation, cash flow, or something else?

If you focus on cash flow, does that mean less appreciation, and vice versa?

We discuss when a market becomes "too hot to buy for cash flow” any longer.

The Midwest has more affordable property and better cash flow but less recession resilience.

Dallas-Fort Worth keeps showing appreciation potential, but cash flow is drying up.

When a market heats up, rents don’t “keep up” proportionally to a property’s market value.

We also discuss low appraisals. Appraisals are what the bank uses to verify the quality of their collateral.

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Listen to this week’s show and learn:

00:54 Stop looking at properties. (What?)

03:36 The importance of cash flow, appreciation.

07:07 The Midwest: more affordable housing, better cash flow, but less recession resilience.

08:52 Dallas-Fort Worth’s appreciation.

11:00 When a market becomes too hot.

14:48 “Lump Sum Cash Flow” defined.

16:23 With 5:1 leverage and 6% appreciation, $100K becomes $300K in five years.

18:22 Blended portfolio.

21:10 Median rent income vs. median housing value.

25:17 Why low appraisals can occur.

Resources Mentioned: