Appreciation or Cash Flow Focus When Starting Out

[Nick Henry]

Hi there - I am starting out in real estate investing and am trying to build a portfolio of rentals that can produce enough cash flow for me to eventually leave my job and make real estate my main job. I have been going back and forth between an appreciation focused investment versus a cash flow focused investment. I'm unsure which focus would help me scale my portfolio and achieve my goals more efficiently. 

In the long run, I want to have properties that are producing strong cash flow (eventually would love to own small apartment buildings and syndicate larger deals), but it seems that focusing on cash flow and reinvesting those cash flows will be a slower process than focusing on properties prime for appreciation or with opportunities for forced appreciation. It seems I could scale my portfolio faster with an appreciation focus.

Does anyone have any thoughts or recommendations on this? I live in SoCal so if I wanted strong cash flow I would likely have to look out of state. I am definitely open to out of state investing though if that helps me reach my goal more efficiently, but would love to stay on the west coast. Thanks in advance for any input!