On The Market Do “Cash Flow Markets” Really Make You Rich?
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Aug 18, 2025 In this discussion, Kathy Fettke, a seasoned investor with 30 years of experience, challenges the notion that hot markets like Austin and Nashville are the keys to wealth. She shares insights on slow-growth cash flow markets such as Cleveland and Memphis, arguing they can sometimes offer better long-term returns. The conversation includes tips on blending cash flow with appreciation strategies, understanding local dynamics, and navigating the complexities of today's housing market amid demographic shifts.
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Appreciation Can Be Volatile
- Hot appreciation markets can produce rapid gains but also large swings that hurt poorly timed buyers.
- Slow, steady markets may look safer but omit many hidden costs and opportunity costs that impact net worth.
Pittsburgh Duplex That Barely Moved
- Kathy bought a duplex near Pittsburgh for about $55,000 and invested ~$30,000 more for a total of ~$80,000.
- After 10–15 years she sold and basically just got her money back due to deferred maintenance and old construction.
Cleveland City Inspection Cost Hit
- Kathy bought an older Cleveland home for ~$50,000 and later faced a city-ordered $26,000 plumbing remediation.
- She still recovered money when selling, but the inspection and repair costs are real and significant.