Cash Flow vs Equity in a hot Market

[Toby Goodroad]

Trying to assess multiple opportunities in a hot market.  Currently focused on lower end condo/townhomes.  The home prices making it hard to pencil a positive cash flow.  However cap rate is 5% on most properties and when considering equity increase over 10 year period my returns are 15%-20% YOY.  Market appreciation is 3-4%.  I don't need the cash flow to invest in more properties and I am a patient investor with a steady job.  Can anyone help me decide to invest or move on to a new market.  Thanks.